LANSING, Mich. (Michigan News Source) – Michigan Attorney General Dana Nessel has formally stepped into the Gotion situation, demanding repayment of $23,670,873.56 after the state declared the company in default on its performance-based grant.
Once pitched as a $2.4 billion economic development win for Michigan, the Gotion battery plant unraveled after years of local opposition, stalled progress, and mounting legal battles. The project, planned for Green Charter Township near Big Rapids, relied heavily on state incentives tied to performance benchmarks. But after months of inactivity at the site – and amid an ongoing lawsuit between Gotion and the township – the Michigan Strategic Fund (MSF) determined the company had failed to meet key obligations under its grant agreement. That determination set off a chain reaction: a formal notice of default, followed by the state’s decision to claw back taxpayer funds and refer the matter to the attorney general for collection.
MORE NEWS: Trump Admin’s Lawsuit to Block Mich. Climate Case Rejected
In a January 30, 2026 letter, the Attorney General’s office confirmed that the Michigan Strategic Fund (MSF) has referred the matter for collection after Gotion failed to cure multiple default events within the required 30-day window. The letter makes clear the state is no longer waiting: repayment is being pursued immediately.
MEDC: This is a formal demand for repayment.
The Michigan Economic Development Corporation (MEDC) has confirmed that the situation has moved beyond warnings and into active recovery. In a statement provided to Michigan News Source, MEDC said, “This action serves as MEDC’s formal demand for payment on the $23.7 million in SSRP (Strategic Site Readiness Program) grant dollars that were disbursed to the company. The MEDC is actively working with the Department of Attorney General on these collection activities with an objective to secure repayment of the entire amount owed.”
The letter continues, “On September 17, 2025, the Michigan Strategic Fund issued a notice of default to Gotion, Inc. on its performance-based grant in which the company had 30 days to resolve those default events. Those default events were not resolved, activating MEDC’s right to execute on a demand for payment.”
The closing statement from MEDC said, “MEDC has been working since that time to fully brief the Attorney General’s office and coordinate to return the balance of the SSRP grant in order to put the state in the strongest position for repayment. 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.”
Gotion’s repayment obligation has unfolded in two distinct stages. On September 17, 2025, the Michigan Strategic Fund issued a formal notice of default, giving the company 30 days to cure multiple violations tied to its performance-based grant. That cure period expired on October 17 without resolution, triggering the state’s right to demand repayment. While the Attorney General’s demand letter requests payment within 30 days as part of standard collection procedures, the MEDC has clarified that a statutory 90-day repayment window is now in effect.
Gotion signals shift from building a plant to seeking damages.
At the same time the state is moving to recover taxpayer dollars, Gotion is signaling a major shift in its legal strategy. In filings before the U.S. Court of Appeals for the Sixth Circuit, the company acknowledges that the Green Charter Township project “may no longer be viable,” but argues that the township’s actions – including rescinding water access and adopting restrictive zoning measures – breached a development agreement and made construction impossible. While the original lawsuit sought declaratory and injunctive relief to force cooperation, Gotion now says the circumstances have “fundamentally changed.”
MORE NEWS: A Goose in Your Yard Could Get You Sued in Michigan
As a result, Gotion has told the court it intends to amend its complaint to pursue significant monetary damages from Green Charter Township. The company claims township resistance, political opposition, and regulatory barriers stalled the project, ultimately contributing to the state declaring the company in default. Township attorneys, however, argue the project has been abandoned, the plant will never be built, and the lawsuit itself should be dismissed as moot – setting up a legal fight not over a factory, but over who pays for its collapse.
Cella praises AG’s move, calls Gotion deal “worst in Michigan history.”
Michigan News Source contacted Joseph Cella, a former U.S. ambassador and current director of the Michigan China Economic Security and Review, for comment on the latest developments involving the attorney general. Cella and his co-founder, Peter Hoekstra, have been long-time opponents of the Gotion project, repeatedly raising concerns about its national security, economic, and geopolitical implications.
Cella responded, “Attorney General Nessel is to be commended for demanding CCP-tied Gotion pay back the $24 million they owe hard working Michigan taxpayers after defaulting on the corrupted “deal” with the MEDC. It is thick with irony that the State of Michigan who recklessly championed the “deal” with CCP-tied Gotion is now on the verge of having to sue the company.”
Cella continued, “This is likely the worst economic development ‘deal’ in the history of Michigan, and it all could have been avoided had the most basic of best practices been followed – such as due diligence, strict scrutiny, transparency, geopolitical considerations, market analysis and consumer demand.”
