The Michigan Strategic Fund and Michigan Economic Development Corporation issued a notice of default to Gotion Inc. regarding its proposed electric vehicle battery facility in Green Charter Township.

This comes in light of Gotion’s “voluntary abandonment” of the project for the past four months. The company is also currently in two different lawsuits. 

Many state leaders have spoken about the decision, including state Rep. Tom Kunse, who represents the 100th District.

“The state’s decision to hold Gotion in default confirms the concerns many of us raised from the very beginning,” Kunse said. “As the state representative of the district where Gotion is located, I have consistently questioned whether this project was properly vetted and whether it truly served the best interests of Michigan taxpayers. From the start, this proposal was marketed as a $2.4 billion investment that would bring more than 2,000 jobs to Mecosta County, but years later, we’ve seen little progress and just stalled development, lawsuits, and growing uncertainty.”

With the decision, Gotion now must repay $23.67 million in funds that were distributed to purchase the property. It will also lose approximately $700 million combined from Critical Industry Program grant incentives, allocations from The Right Place and 30-year tax exemptions. 

The project was initially given the green light in October 2022 for $2.4 billion but has seen community pushback in the form of protests and a township board recall.

"Despite Gotion’s rosy promises and influence campaign on local leaders, the residents of Green Charter Township repeatedly showed us they do not support a company beholden to the Chinese Communist Party setting up shop in their town," Congressman John Moolenaar said. "Two years ago, this community came together and recalled the officials who welcomed Gotion and the CCP to town. Instead of listening to the will of the people, the company decided to fight them; suing the resilient small town in a vain attempt to force its way in, and ridiculing those who did not support its project. While fighting the rural community, the company was derelict in its responsibilities to the State. Now that its contract with the State of Michigan and MEDC is set to be terminated, the people of Green Charter Township can finally move on from Gotion’s lies and broken promises.”

Big Rapids Daily News will continue to follow this story as it develops.

_{This story was edited on Friday, Oct. 24, 2025 at 8:43 a.m. for adding a quote by John Moolenaar.}