A small mid-Michigan township may be on the hook for tens of millions of dollars to a Chinese electric vehicle battery maker.
At issue is a now-defunct $2.4 billion battery plant, funded in part with state subsidies. Gotion is accusing Green Charter Township, located just outside of Big Rapids, of violating an agreement to give the plant access to local water.
Green Charter Township's board revoked a water permit they had with the company. Newly elected leadership were concerned about Gotion's public ties to the Chinese Communist Party and worked to slow the development of the plant.
The ongoing legal fight between the two sides led to state economic officials revoking the over $23 million state subsidy that used to acquire the land for the plant. State officials, including Michigan Attorney General Dana Nessel, are demanding Gotion give the state their money back.
Now, Gotion is looking to receive compensation for lost profits, legal fees and the cost of the now revoked state subsidy. The case was deemed moot by the 6th Circuit Court of Appeals in February and moved to the Western District Court of Michigan.
“Now that Gotion’s original prayer for relief as to injunctive relief only is moot, the time is ripe for Gotion to seek monetary damages,” the federal court filing reads.
Green Charter Township Supervisor Jason Kruse says the township is waiting for further developments.
"It would be wonderful if it was dismissed since it is moot, but we don't know,” he said. “We're the defense. So, we're waiting to see what happens."
He says the township is dealing with legal costs, and that they’ve had to make “some budgetary adjustments in order to make sure that we can fulfill our obligations.”
“We've structured payments with the attorneys and we just move forward,” Kruse said.
Last year, the Mecosta County board voted to allow Green Charter Township to use just under $200,000 in marijuana taxes to pay for legal fees.
A spokesperson for U.S. Rep. John Moolenaar's office, R-Caledonia, did not directly respond to the latest legal action taken by Gotion and referred WCMU to a previous statement made by Moolenaar in January, which said Gotion’s legal effort was a “new low,” and an attempt to “hold the town hostage.”
Moolenaar, who chairs the U.S. House Select Committee on China, has been one of the most vocal critics of Gotion's proposed plant.
