Gotion High-Tech, a leading Chinese electric vehicle (EV) battery manufacturer, has encountered a major obstacle in its ambitious U.S. expansion strategy. The company’s proposed $2.4 billion battery component manufacturing plant in Green Charter Township, Mecosta County, Michigan—an anchor project in its North American development—has been suspended due to a legal battle with local authorities.
The project, codenamed Project Elephant, was expected to bring thousands of jobs to the region and solidify Gotion’s presence in the U.S. energy supply chain. Initially approved in 2023 by the township’s leadership, the facility was projected to play a critical role in supporting the American EV market with domestically assembled battery packs and components.
New Township Board Rescinds Agreement
The turning point came in 2024 when a newly elected township board voted to rescind the development agreement previously authorized. The move marked a stark reversal of local policy and prompted Gotion to file a lawsuit citing breach of contract.
In response, a preliminary injunction issued in May 2024 ordered the township to uphold the original agreement. However, the township appealed the ruling and requested a stay, which the court only partially granted. Both parties have since agreed to pause proceedings while the appeal is reviewed by the U.S. Sixth Circuit Court of Appeals. A final decision is still pending and will be pivotal in determining whether the project can move forward.
County-Level Support Withdrawn
Tensions surrounding the project escalated further when the Mecosta County Board of Commissioners voted to withdraw their formal support. While the resolution is not legally binding, it underscores growing local skepticism about the project’s future.
Despite the political friction, Gotion’s Vice President and U.S. General Manager, Chuck Thelen, expressed confidence in the company’s position. He stated that the board’s decision would not derail the company’s plans and reaffirmed Gotion’s long-term commitment to investing in the U.S. manufacturing sector.
California Factory Now Operational
In contrast to the legal uncertainty in Michigan, Gotion achieved a significant milestone in December 2023 with the official launch of its Fremont, California factory. Located in Silicon Valley, the facility is Gotion’s first U.S. battery pack production site, with a designed capacity of 1 GWh and an automation rate of 85%.
The Fremont plant produces portable and residential energy storage systems and represents a key step in Gotion’s “Made in USA” strategy. The company has emphasized that localizing its production operations is vital to better serve U.S. customers and comply with federal policy incentives.
Expansion Plans Continue Despite Challenges
Beyond Michigan, Gotion has also unveiled plans to establish manufacturing operations in Illinois, part of a broader effort to scale its presence across the American Midwest. These moves aim to support the rapid growth of the U.S. energy storage and electric mobility sectors.
However, the outcome of the Michigan legal proceedings may have broader implications. A favorable court decision could revive the stalled project and restore confidence in Gotion’s U.S. investment roadmap. Conversely, prolonged legal uncertainty could prompt the company to reconsider its footprint in the region.