How a Michigan Township Risked Bankruptcy Over a Chinese Battery Plant

Green Charter Township, Michigan, is fighting a legal battle that could bankrupt its 3,000 residents. The rural community killed a $2.36 billion battery plant proposed by Gotion, a Chinese manufacturer, triggering a costly backlash.

The project promised 2,500 jobs and nearly $175 million in state incentives. It would have covered 109 hectares, including over 24 hectares of protected wetlands. The site sat about 100 miles from Camp Grayling, a US Army National Guard training facility, raising security concerns among locals.

Voters ousted the entire town board in November 2023 after they initially approved the plan. The new board quickly rescinded all agreements, including a crucial water-access permit. Gotion Inc, the US subsidiary of China-based Gotion High-Tech, sued the township in March 2024. A court granted Gotion a preliminary injunction against the rescission.

The conflict escalated further when the Michigan Strategic Fund declared the project in default by October 2025. The state demanded $50 million back in subsidies and sought $23.6 million for land purchases. Gotion’s amended lawsuit filed in June 2024 demands at least $23 million in damages linked to these funds.

Legal fees have drained the township’s budget, creating a deficit near $400,000. Township Supervisor Jim Chapman faces an uphill fight. As Marjorie Steele put it, “A multibillion-dollar multinational corporation is trying to sue a township of 3,000 people for hundreds of millions of dollars in damages.” Jason Kruse, a local official, warned that a $23 million payout “would not be very easy to navigate.”

The project was part of Gotion’s North American expansion to onshore critical supply chains. But opponents saw it as a “Trojan horse” for Chinese Communist Party influence. Gotion High-Tech’s bylaws included pledges of loyalty to the party, fueling distrust.

Michigan Governor Gretchen Whitmer supported the project, but the township’s resistance turned it into a drawn-out standoff. The Michigan Economic Development Corporation’s declaration of default in late 2025 marked a major escalation.

Green Charter Township’s gamble against Gotion has turned into a costly legal quagmire. The rural community faces financial ruin while a multinational corporation pushes back with heavy litigation. This clash highlights the tension between economic development, local control, and geopolitical concerns in the US industrial landscape.