A Chinese company that promised to invest billions of dollars to build an electric vehicle battery factory in western Michigan has sued the town where the factory is planned. The lawsuit was filed in federal court on Friday, and members of the town's board, whose hostility toward the project won them an election last fall, voted to tear up an agreement essential to building the power plant shortly after taking office. This was raised in response to this.
In October 2022, Gov. Gretchen Whitmer and other state officials announced that Goshon would build a $2.4 billion factory to make electric vehicle parts. The final planned site will be in Green Charter Township, a town of about 3,200 people in Mecosta County. 1 hour north of Grand Rapids. In addition to the factory, which promised to create 2,350 jobs, Gortion planned to open an office for corporate employees in nearby Big Rapids, according to Crain's Detroit Business.
But the project quickly faced backlash, and last November five Greene Township board members were recalled by voters for supporting local tax relief for building the power plant. Two of his other members who supported the Gotion project resigned from their positions in early 2023.
Some scrutiny of the project has also focused on claims that the Chinese government has influence over Goshon, which the company denies. The way the project was planned has also come under scrutiny, with some critics saying the local community was not involved before the plant was announced.
Immediately after the recall, the Greene Township Board, which included new members, voted 4-3 to rescind a previously approved plan to extend the city's water service to the plant site, according to minutes of the meeting. . In the lawsuit filed by Goshon, the company asks a federal judge to issue a preliminary injunction ordering the Green Township board to comply with contractual obligations previously agreed to by the former board. ing.
“To prevent the township’s sudden resistance from jeopardizing efforts that have already cost years and millions of dollars to prepare, this court specifically seeks to reinstate the resolution approving the connection. “The township should be ordered to comply with its obligations under the parties' agreement to provide the city's water system to the Gothion project,” the complaint states.
Gauthion also argued that the project's delays would have a negative impact on the region, as the plant would add thousands of jobs “paying nearly 150% of the region's current average wage, including health insurance and paid vacation.” are doing.
Greene Township Supervisor Jason Kruse, a vocal opponent of the Goshon project and elected to the position last November, responded to a voicemail left at his office Monday afternoon. I didn't.
In the lawsuit, Goshon's lawyers say the company has already invested millions of dollars into the project. That includes $24 million to purchase 270 acres of land last August. The company also promised $56 million in planned wages, the complaint states.
The complaint states that water infrastructure is key to the project, as the plant could require up to 715,000 gallons of water per day to operate.
“Because the Project has significant water demands, Gothion is required to obtain water from sources with sufficient capacity to effectively serve the Project,” the lawsuit states.
In December, Gothion sent a letter to county commission members asking them to rescind the water agreement, but the board's attorney said in February that “Gothion has not considered the violations that Gothion asserted on Dec. 8. “I am,” he replied. Communication for 2023 has ended. ”
In a February letter, the lawyers asked Goshon to answer a series of questions related to the project, including potential environmental impacts and whether the company would be subject to review by the Committee on Foreign Investment in the United States (CFIUS). I asked for it. It is kept at the U.S. Treasury and investigates potential national security risks of foreign investment projects. The letter also asked whether such findings would be made available to the public.
According to MLive, Gaushon announced in June last year that the green township project was not subject to review by CFIUS after the U.S. Treasury determined that it was not a “covered transaction” under its jurisdiction. Some Republicans, including Rep. John Moolener (R-Caledonia) and Rep. Lisa McClain (R-Bruce Township), are also calling for an overhaul of CFIUS.
On Friday, Greene Township was issued a subpoena to respond to the lawsuit within 21 days. The case was assigned to Grand Rapids-based U.S. District Judge Jane Beckering.
Gotion says it will invest a total of $2.4 billion in the project to create thousands of jobs. In 2022, Whitmer and the then-Republican-controlled Michigan Legislature awarded the project $715 million in state-backed incentives as part of a strategy to attract large-scale projects that would spur economic growth. approved.
In addition to potential job creation, Whitmer also praised the Goshon project and other projects that have received state-backed incentives to produce key electric vehicle components such as batteries. Whitmer and other proponents of electrification in the auto industry say electric vehicles are an important tool for combating the effects of climate change.
Contact Arpan Lobo at alobo@freepress.com. Follow him on Twitter @arpanlobo.
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