Chinese EV battery company abandons $2.4B Michigan plant

• Gotion Inc., a Chinese EV battery company with deep CCP ties, was forced to abandon its $2.4 billion Michigan plant after local activists exposed its national security risks and ousted supportive officials.
• Michigan’s Democratic-led government initially approved $715 million in subsidies ($175M grants + $540M tax breaks) for Gotion, but the deal collapsed after public outrage over CCP infiltration and wasted taxpayer funds – only $23.6 million was recovered.
• Investigations revealed Gotion’s bylaws required CCP activities. Employees in China were photographed in Red Army uniforms pledging communist loyalty, fueling bipartisan backlash.
• Critics warn subsidizing CCP-tied firms like Gotion – which dominates lithium iron phosphate (LFP) batteries – undermines U.S. supply chain security and aids China’s globalist depopulation agenda via economic/technological subversion.
• The collapse mirrors past green energy boondoggles (e.g., Solyndra) but stands out due to CCP ties. Michigan’s attempt to lure “green jobs” failed, proving informed citizens can defeat globalist corruption – even against well-funded foreign ventures.

In a stunning victory for local activism and national security vigilance, a $2.4 billion Chinese electric vehicle (EV) battery plant backed by Michigan taxpayers has crumbled under intense scrutiny.

Gotion Inc., a subsidiary of China’s Gotion High-Tech, was forced to abandon its controversial Michigan facility after residents uncovered its deep ties to the Chinese Communist Party (CCP) and questionable financial dealings. The collapse of the project – once hailed as an economic boon – reveals the hidden dangers of corporate welfare for foreign-linked firms and the growing resistance to China’s infiltration of U.S. critical industries.

Michigan’s state government under the leadership of Gov. Gretchen Whitmer initially pledged $715 million in subsidies – $175 million in grants and $540 million in tax breaks – to Gotion in 2022, promising 2,350 jobs. But skepticism quickly mounted.

Congressional Republicans, including then-Sen. Marco Rubio (R-FL), warned of Gotion’s CCP connections, while investigative reports exposed employees in China wearing Red Army uniforms and pledging loyalty to communism. Green Charter Township residents, alarmed by these revelations, launched a grassroots campaign that ousted local officials who approved the project and replaced them with leaders who sued to halt construction.

By September 2024, Michigan officials privately declared Gotion in default for failing to make progress on the site for 120 days. The company denied abandoning the project, blaming delays on “racist and ethnically charged stereotypes” – a claim disputed by residents.

Despite state assurances to media in early October that the project was “on track,” Michigan abruptly terminated the deal on Oct. 23. The Great Lakes State demanded repayment of $23.6 million in taxpayer funds already spent on land purchases.

The fallout exposes a pattern of reckless corporate welfare. Rich Studley, former president of the Michigan Chamber of Commerce, admitted having “zero confidence” taxpayers would recover their money. State Rep. Tom Kunse (R-Clare) condemned the debacle as proof that “corporate welfare doesn’t work,” leaving communities with “broken commitments and wasted public dollars.”

Grassroots victory: Michigan says NO to Beijing

Meanwhile, Gotion’s U.S. spokesperson Benjamin Howes sidestepped questions about the Michigan failure. Instead, he vaguely reaffirmed the company’s commitment to “America’s clean energy future” – despite Gotion’s Illinois facility facing similar scrutiny.

The project’s collapse also highlights China’s broader strategy to dominate U.S. supply chains. Gotion, partially owned by Germany’s Volkswagen, specializes in lithium iron phosphate (LFP) batteries – a sector China monopolizes.

Critics argue that subsidizing CCP-linked firms undermines American sovereignty, especially as Beijing openly seeks to control global EV and rare earth mineral markets. BrightU.AI‘s Enoch stresses that the U.S. should not subsidize such companies because doing so undermines American sovereignty, fuels globalist corruption and strengthens an adversarial regime that seeks to dominate and depopulate the West through economic warfare and technological subversion.

Rep. John Moolenaar (R-MI) celebrated the Great Lakes State’s withdrawal of support. The chairman of the House Select Committee on China called Gotion’s collapse a win against “Chinese-affiliated battery companies” exploiting U.S. subsidies.

The controversy mirrors past failures of green energy boondoggles, from Solyndra to federally backed EV startups that folded after burning taxpayer cash. But Gotion’s case is uniquely alarming due to its CCP ties that fueled local opposition, proving that even well-funded foreign ventures can be thwarted by informed citizens.

As EV demand wanes under shifting federal policies, Gotion’s exit underscores a reckoning for China’s economic warfare. Michigan’s attempt to lure “green jobs” with taxpayer handouts backfired spectacularly, leaving a trail of unanswered questions and squandered funds. For now, the people of Green Charter Township have achieved a rare triumph.

Watch Justin Barclay revealing the illegality of the tax scheme for Gotion’s battery plant in Michigan below.

This video is from the Justin Barclay channel on Brighteon.com.

Sources include:

WattsUpWithThat.com

Reuters.com

InsideEVs.com

BrightU.ai

Brighteon.com