In October of last year, Chinese battery manufacturer Gotion High-Tech’s U.S. subsidiary announced plans to build a factory in the state of Michigan. Subsequently, the project received approvals from the state government and the U.S. Treasury Department. However, as the 2024 U.S. presidential election approaches, Gotion High-Tech’s factory construction plan in the U.S. has faced various obstacles.
On December 20th, the Chinese media outlet “Observer Net” reported that the town of Greenville in Michigan, chosen as the site for Gotion High-Tech’s new factory, voted to recall five local officials in November who had previously approved the construction project. The reason cited was their prior approval of the factory project. The new mayor stated that he is currently reviewing all matters related to and proposed by the factory.
According to “Bridge Michigan,” a local media outlet, during a special meeting held in November, 60% of Greenville residents supported the recall of the five officials who approved Gotion High-Tech’s factory construction plan. A new mayor and town council members (all Republicans) were elected as a result.
The resolution passed during the special meeting indicated that the former officials had provided “strong support” to Gotion, Gotion High-Tech’s U.S. subsidiary. These officials had previously stated that the new factory, expected to be completed and operational by 2025, would bring “technology and manufacturing” local products to the town, stimulating the local economy and creating over 2,500 job opportunities.
Earlier this month, the new mayor, Jason Kruse, revoked a resolution passed by the previous government last year in support of the construction plan. Kruse claimed that the previous town government had failed to address residents’ concerns about environmental issues and Gotion High-Tech’s ownership, and had not used sufficient time and legal expertise to review the agreement. Kruse stated that the town government is re-evaluating all matters related to the proposed factory.
However, Gotion High-Tech has not changed its investment plan. Chuck Thelen, Vice President of Gotion North America, previously stated that the construction plan is “not slowing down, and the location has not changed.” He revealed that he had engaged in an hour-long “introductory conversation” with the new mayor. In a statement to “Bridge Michigan” in early December, Thelen also mentioned that the company is formulating, planning, and finalizing site plans.
Gotion High-Tech is headquartered in Hefei, China, with lithium battery shipments of approximately 28.5 GWh in 2022. According to data from the China Automotive Power Battery Industry Alliance, Gotion High-Tech’s annual power battery installation volume is 13.33 GWh, with a market share of 4.52%, ranking fourth domestically. Among them, the installation volume of iron phosphate lithium power batteries is 11.89 GWh, with a market share of 6.47%, ranking third. According to Battery China data, in 2022, Gotion High-Tech ranks second in the number of domestic market customers among vehicle manufacturers.
In recent years, Gotion High-Tech has focused on internationalization and the “expansion of energy storage.” Currently, the company has established ten production bases domestically and has overseas factories in locations such as Göttingen, Germany, India, and Vietnam.
In October of last year, Michigan Governor Gretchen Whitmer announced that Gotion, Gotion High-Tech’s U.S. subsidiary, plans to invest $2.4 billion in building a battery materials factory in the state, creating 2,350 job opportunities. After months of “national security” review, the U.S. Treasury Department’s “Committee on Foreign Investment in the United States” approved the construction plan in June.
By September of this year, Illinois Governor J.B. Pritzker announced that Gotion would invest $2 billion in establishing an “advanced” electric vehicle lithium battery manufacturing plant in the state. Pritzker referred to this investment plan as the state’s “most important and historic new manufacturing investment in decades” and revealed that the new factory is expected to start production in 2024, creating 2,600 new job opportunities.
This year, public and political protests against Gotion High-Tech’s U.S. factory construction plan have noticeably increased. According to the South China Morning Post, several conservative local media outlets have recently emphasized Gotion High-Tech’s “Chinese lineage,” causing concerns among local residents. In addition, as the 2024 U.S. presidential election approaches, opposition to Gotion High-Tech’s factory construction plan led by Republicans is expected to grow.
In September of this year, prominent “anti-China lawmaker” and Republican U.S. Senator Marco Rubio was among the first to criticize Gotion High-Tech. He, along with several Republican lawmakers, sent a letter to U.S. Treasury Secretary Janet Yellen questioning Gotion High-Tech’s official background, using the pretext of “national security.” Last month, two Republican lawmakers from Michigan and Illinois respectively drafted the so-called “Oppose Gotion High-Tech Act” in the U.S. House of Representatives.
Meanwhile, some U.S. politicians continue to advocate for weakening China’s advantage in the electric vehicle battery field and reducing dependence on China.
A Reuters report mentioned that this is not the first time Republican lawmakers have criticized Chinese battery manufacturers’ factory construction plans in the U.S. Previously, Rubio and other Republicans had requested detailed information from Tesla regarding its relationship with Chinese battery manufacturer CATL, and called on Congress and the Treasury Department to conduct a so-called “national security” review of the joint venture factory plan between Ford and CATL.
Some opponents believe that the uncertainties in Greenville indicate a challenging period for Gotion High-Tech’s U.S. expansion. However, Jundai Liu, a researcher at the University of Michigan’s International Institute, told the South China Morning Post that canceling Gotion High-Tech’s factory project would lead to disputes between local and state governments in the United States and pose legal problems for the town. “Currently, no government level can unilaterally make the final decision on this project.”