LANSING, Mich. (Michigan News Source) – Under Michigan’s Strategic Site Readiness Program statute, money subject to clawback must be repaid within 90 days of notification. Miss that window, and the penalty kicks in: 1% per month, prorated daily. No extensions. No mystery math.

For Gotion, Inc., that clock matters. The state is demanding $23,670,873.56 back from the stalled Gotion megasite deal – and once day 91 hits, the tab starts growing fast.

State pulls plug after megasite fails to move forward.

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The repayment demand is tied to China-linked Gotion’s proposed electric vehicle battery manufacturing project in Green Charter Township, where the company received Strategic Site Readiness Program funds to prepare land for a planned megasite.

According to state officials, the project failed to advance as required under the incentive agreement, and the local municipality later withdrew support for the development, effectively halting the project. With the site no longer moving forward as approved, the Michigan Strategic Fund determined the SSRP conditions were unmet, placing the project in default and triggering a $23.67 million clawback of previously disbursed taxpayer funds. As we reported earlier, the attorney general is now involved and sent Gotion a letter on January 30 demanding the payment. The repayment clock started ticking with that letter.

What 1% really looks like in the real world.

If Gotion doesn’t pay back the funds by April 30, Gotion would owe roughly $236,708.74 per month in penalty interest. Broken down further, that’s about $7,890 per day.

Every sunrise after the deadline adds another few thousand dollars to the bill. It’s the financial equivalent of a parking meter that never stops spinning. A very large parking meter.

Michigan News Source contacted Chuck Thelen, Gotion Inc.’s North American Vice President of Operations, seeking comment on whether the company intends to pay the funding. He did not respond.