Michigan Seeks $23.6M Repayment from Gotion for Stalled Big Rapids Project

State takes formal step to recoup incentives after battery plant plans were halted over legal challenges.

Jan. 30, 2026 at 5:07pm

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The Michigan Economic Development Corporation has sent a letter to Gotion, a Chinese battery company, formally requesting the repayment of $23.6 million in public assistance that was awarded for a stalled project in Big Rapids, Michigan. The project was halted due to legal challenges and objections from local communities.

Why it matters

This case highlights the risks and complexities involved when states provide large financial incentives to attract major economic development projects. The state is now seeking to recoup taxpayer funds after the project failed to materialize as planned, raising questions about oversight and accountability in such public-private partnerships.

The details

Gotion had received $23.6 million in grant funding from the Michigan Economic Development Corporation, a semi-private entity, before work on the planned battery plant in Green Charter Township was stopped due to legal challenges and local opposition. The state has now sent a formal letter demanding Gotion repay the full amount within 90 days, with the potential for further legal action if the company does not comply.

  • On January 30, 2026, the state of Michigan sent a formal letter to Gotion requesting the $23.6 million repayment.

The players

Michigan Economic Development Corporation

A semi-private entity that attempts to attract job-creating projects to the state of Michigan through the use of financial incentives.

Gotion

A Chinese battery company that had received $23.6 million in state funding for a planned project in Big Rapids, Michigan that was ultimately halted.

Danielle Emerson

Public relations manager for the Michigan Economic Development Corporation.

Chuck Thelen

Vice president of Gotion's North American operations.

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What they’re saying

“Now begins a statutory, 90-day clock for the company to repay that amount in full, with no additional penalties. MEDC will continue to pursue the rights and remedies MSF is entitled under the agreement if there has not been a full repayment at the end of that 90-day period.”

— Danielle Emerson, Public relations manager, Michigan Economic Development Corporation

“We are pleased to continue our conversations with the state.”

— Chuck Thelen, Vice president, Gotion North America

What’s next

If Gotion does not repay the $23.6 million within the 90-day period, the state has indicated it will pursue further legal action to recoup the funds.

The takeaway

This case underscores the need for greater oversight and accountability when states provide large financial incentives to attract economic development projects. The failure of the Gotion project in Big Rapids has resulted in a costly repayment demand, highlighting the risks involved in such public-private partnerships.