BIG RAPIDS TOWNSHIP, Mich. — One of the most-controversial developments in Michigan could lose millions in public funding after the state said the project is in default.
The Michigan Strategic Fund (MSF) notified Gotion Inc, the company behind a massive battery plant planned just outside Big Rapids, saying the company broke several portions of a Critical Industry Program Grant Agreement that would have provided the company with $175 million of public funds for the facility.
First announced on October 5, 2022, the plan was ticketed as a $2.3 billion project that would support 2,300 jobs.
But public opinion on the development quickly soured, with several protests, both at the local and national levels opposing both the plant and the public funding for it.
READ MORE: Voters remove five township commissioners who backed Gotion plant
READ MORE: State Senator wants to halt funding for Big Rapids battery plant
READ MORE: Mecosta County pulls back support for Gotion project
Now the state money that would have gone to it will likely not be spent.
In a letter dated September 17, 2025, MSF Fund Manager Matthew Casby told the company it had voluntarily abandoned the project by failing to carry out eligible activities on the property over a period of 120 consecutive days. Casby also cited two on-going lawsuits over the project that have affected the construction of the facility. The MSF told Gotion those lawsuits broke a separate sub-section of the public funding agreement.
The event of default notice paused the distribution of grant funds to Gotion for the project. $175 million from the state would have gone to the battery plant. So far, only $23.6 million had been handed over, according to a spokesperson from the Michigan Economic Development Corporation (MEDC).
Read the full notice of default letter below
Letter to Gotion with Notice of Default by WXMI
In a statement to FOX 17, the MEDC said it is working to get a reimbursement of the funds that have already been distributed.
The remaining $151.4 million was not spent.
“We continue to focus on securing advanced manufacturing investments, especially across ICE, EV and hybrid vehicles to position Michigan at the forefront of the mobility revolution as it evolves and adapts to market conditions within this decade and beyond," said the MEDC statement. "We will continue doing all we can to bring good paying jobs and economic opportunity to Michiganders everywhere.”
The state provided Gotion with 30 days to respond to its letter and fix the breaches of contract.
GOTION'S RESPONSE
In a letter dated October 15, 2025, the final day of the response period, Gotion claimed it was shocked to receive the state's letter, saying it, "came without provocation or warning."
The company wrote that is has not abandoned the Big Rapids project and would be well into construction if not for the on-going legal battles with local governments.
RELATED: Gotion delays rezoning application
Gotion squarely blamed Green Township, one of the two townships the facility would reside in, for breaking a development agreement with the company. Gotion also said the legal outcome for its lawsuit in federal court appears to have a good chance at succeeding.
Citing the grant agreement, Gotion went on to claim the state did not define what counts as an eligible expense. The company says it has continued to pay professional fees, property taxes, and utility bills tied to the project, including over the 120 day period the MSF said the company had taken no qualifying actions.
Gotion asked the MSF to suspend the notice of default for six months so that it, the state, and local governments could have open talks about the project's viability.
Read the full response to the notice of default below
Gotion response to notice of default by WXMI
OPPOSITION CHEERS
Vocal opponents of the Gotion plant cheered Thursday's revealation.
U.S. Representative John Moolenaar (R -MI 2nd District) said the notice of default was a long time coming.
“Despite Gotion’s rosy promises and influence campaign on local leaders, the residents of Green Charter Township repeatedly showed us they do not support a company beholden to the Chinese Communist Party setting up shop in their town," said Moolenaar in a statement. "Instead of listening to the will of the people, the company decided to fight them; suing the resilient small town in a vain attempt to force its way in, and ridiculing those who did not support its project. While fighting the rural community, the company was derelict in its responsibilities to the State. Now that its contract with the State of Michigan and MEDC is set to be terminated, the people of Green Charter Township can finally move on from Gotion’s lies and broken promises.”
State Senator Aric Nesbitt (R - Porter Township) said the project should have lost state funding long before now.
“The plug should have been pulled on this farce long ago. From the very beginning, this reckless project lacked transparency, undermined the trust of Michigan taxpayers and raised serious national security concern," said Nesbitt in a statement. “This scheme should have never even happened."
NOT TERMINATED, YET
In a response to our questions, a MEDC spokesperson said the deal does remain in place. A termination letter would have to be signed by MSF leaders for the agreement to officially end.
It may not come to that though. The MEDC is open to a mutual resolution that could return the public funds and see the battery plant plans be dropped.
No timeline on that process was provided.
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