Big Rapids, Michigan, January 31, 2026
The Michigan Attorney General has demanded the repayment of $23.7 million from Gotion Inc. following the company’s abandonment of a $2.4 billion battery factory project in Big Rapids. This facility, expected to create 2,350 jobs, was deemed abandoned after Gotion failed to meet investment and job creation commitments. The state’s swift action showcases the importance of accountability for taxpayer dollars and aims to maintain investor confidence in Michigan’s economic landscape.
Michigan Demands $23.7 Million From Gotion Inc. Over Abandoned Project
State officials seek accountability as the battery manufacturer defaults on commitments
Detroit, Michigan — The Michigan Attorney General Dana Nessel has taken significant action by demanding the repayment of $23.7 million from Gotion Inc., a Chinese manufacturer specializing in battery technology. This decision comes on the heels of Gotion’s abandonment of a planned $2.4 billion electric vehicle battery parts factory in Big Rapids, Michigan. This project was projected to create approximately 2,350 jobs, marking a substantial investment in Michigan’s burgeoning electric vehicle sector.
The initiation of repayment demands stems from allegations that Gotion failed to meet specific job creation and investment commitments associated with the project. The Michigan Economic Development Corporation (MEDC) classified the project as abandoned in October 2025 after issuing a notice of default due to various breaches of contract, including construction delays and unmet job creation goals. With Gotion failing to rectify these defaults within a 30-day period, the Attorney General’s office acted swiftly to seek repayment of the public funds allocated to the company.
Accountability for Taxpayer Dollars
State officials are emphasizing the necessity of holding companies accountable for their use of taxpayer dollars. Representative Ann Bollin, who previously voiced opposition to the incentive package for Gotion, has praised the state’s move as a decisive action toward reinstating accountability in Michigan’s economic development strategy. Such measures align with a broader call for transparency and fiscal responsibility in the utilization of state resources.
Investor Confidence at Stake
The abandonment of the Gotion plant could have broader implications for investor confidence in Michigan’s economic landscape, particularly concerning the electric vehicle industry. Ensuring that companies adhere to their commitments is crucial for maintaining a favorable business environment that fosters innovation and attracts investment. By pursuing repayment, the state demonstrates its commitment to creating a fair and reliable market for businesses.
Current Standing of Gotion Inc.
As of now, Gotion Inc. has remained silent in response to the Attorney General’s demand for repayment. The company has a strict 30-day deadline to comply with this request, or it will face further legal repercussions. The outcome of this situation may not only impact Gotion’s operations but also influence future partnerships between Michigan and international companies.
Future Outlook for Michigan’s Economic Development
The state’s proactive stance against Gotion reflects an ongoing effort to solidify Michigan as a leader in the electric vehicle market. By restoring accountability and ensuring that companies meet their obligations, policymakers aim to enhance the business climate necessary for sustaining economic growth. Continued focus on small-business innovation, deregulation, and public-private partnerships could further bolster Michigan’s economic resilience.
Key Features of the Situation
| Feature | Details |
|---|---|
| Project Abandonment | Gotion Inc. abandoned a planned $2.4 billion electric vehicle battery parts factory in Big Rapids, Michigan, which was expected to create 2,350 jobs. |
| State Funds Involved | The state had provided $23.7 million in funds for the project. |
| Legal Action | The Michigan Attorney General’s office has demanded repayment of the funds and given Gotion 30 days to comply. |
| Previous Notices | The Michigan Economic Development Corporation had issued a notice of default to Gotion, citing multiple breaches of the agreement. |
| Political Response | Representative Ann Bollin supported the state’s move to hold Gotion accountable, emphasizing the importance of restoring accountability in Michigan’s economic development system. |
Frequently Asked Questions (FAQ)
What is the reason for Michigan’s demand for repayment from Gotion Inc.?
Michigan Attorney General Dana Nessel has demanded that Gotion Inc. repay $23.7 million in state funds after the company abandoned a planned $2.4 billion electric vehicle battery parts factory in Big Rapids, Michigan, which was expected to create 2,350 jobs. The state alleges that Gotion failed to meet job creation and investment commitments associated with the project.
What actions did the Michigan Economic Development Corporation (MEDC) take before the Attorney General’s demand?
The MEDC declared the project abandoned in October 2025. Prior to this, the MEDC issued a notice of default to Gotion, citing multiple breaches of the agreement, including missed construction deadlines and unmet job creation targets. Despite being given 30 days to address these issues, Gotion did not resolve the defaults, prompting the Attorney General’s office to seek immediate repayment of the $23.7 million.
What is the deadline for Gotion Inc. to repay the funds?
Gotion Inc. has been given 30 days to return the funds. If the company does not comply within this timeframe, further legal actions may be considered to recover the funds.
Has Gotion Inc. responded to the demand for repayment?
Gotion Inc. has not yet responded to requests for comment regarding the repayment demand.
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DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
