Chinese Energy Firm's Subsidiary Sues Michigan Town Over Electric Vehicle Battery Project

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ICARO Media Group
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19/03/2024 21h44

In a legal battle between a subsidiary of a Chinese energy firm and a small town in Michigan, Gotion Inc. has filed a breach-of-contract complaint against Green Charter Township. The town officials have been opposing Gotion's massive electric vehicle (EV) battery project, leading to escalating tensions between the two parties.

Green Charter Township, located in northwestern Michigan, became the focus of controversy when Democratic Michigan Gov. Gretchen Whitmer announced Gotion's plan to invest $2.4 billion in constructing two large production plants and supporting facilities spanning 260 acres within the town. The governor stated that the project aimed to reinforce Michigan's position as a global hub for mobility and electrification.

However, the project faced significant opposition from local residents who expressed concerns about Gotion's ties to China. The corporate bylaws of Gotion High-Tech, the parent company of Gotion Inc., state that the company must "carry out Party activities in accordance with the Constitution of the Communist Party of China." Additionally, Gotion High-Tech organized company trips to Communist Party revolutionary memorials in China, where employees wore Red Army outfits and pledged allegiance to communism.

Despite this opposition, Green Charter Township initially approved a resolution in support of Gotion's project in December 2022. However, in August 2023, the township's newly appointed Supervisor James Chapman was authorized to privately negotiate the terms of a development agreement with Gotion. The agreement, which was executed on October 10, 2023, was later rescinded by the newly elected board members following a successful recall effort against the previous officials.

Claiming that the development agreement remains legally binding, Gotion Inc. has taken legal action against Green Charter Township in the U.S. District Court for the Western District of Michigan. The company has requested the court to reinstate permits canceled by the township and filed a motion for a preliminary injunction to expedite the resolution of the matter.

Responding to the lawsuit, Green Charter Supervisor Jason Kruse expressed disappointment but emphasized that the township would vigorously defend its position. Kruse stated that protecting the interests of the people of Green Charter Township was their top priority and that they refuse to be bullied, despite being a small community.

Former U.S. Ambassadors Peter Hoekstra and Joseph Cella, who lead the opposition to Gotion's plans over national security concerns, criticized the company for its alleged secretive and authoritarian approach. They argued that the lawsuit was an attempt by Gotion to counter the recall of elected officials who supported the project, asserting that the company was disregarding the will of the people.

As the legal battle unfolds, residents of Green Charter Township, from both sides of the aisle, continue to voice their concerns about the potential national security threats posed by Gotion's involvement and their desire to protect the natural surroundings and habitats of the area.

Please note that the information provided is based solely on the text given, and further updates or developments regarding this case may have occurred since the article's publication.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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