A State Senate committee has approved a proposal to give $175-million dollars in incentives to Gotion Incorporated to build an electric vehicle battery parts plant near Big Rapids.
The vote was 10-9.
Among those supporting the project was Jerrilynn Strong, the chair of the Mecosta County Board of Commissioners.
“The direct economic boost will stretch from Cadillac to Grand Rapids and Scotville to Mount Pleasant.” “It will create 2,350 good jobs, better wages and great benefits that will give local families a nicer living in general, not only now but generations to follow.” Strong said.
Gotion is planning to spend $2.4-billion dollars for the factory.
Opponents say the company's ties to China could be a national security threat. Following the approval, State Senator Roger Hauck said in a statement:
“Over the past few months, I have tried to support the proposed Gotion battery project in Big Rapids. The proposal promised to bring over 2,000 good-paying jobs to our community, and as a former hourly worker on a factory floor, I know how transformative a project of this magnitude can be for a community and the opportunities it brings for area families.
“Major developments such as this are not just about the number of jobs promised, but also about the indirect benefits to the community and other local businesses. For these reasons, I’ve tried my hardest to get behind this development and give the company latitude in addressing the concerns that have been raised by local residents, by lawmakers, and by people across the state.
“Unfortunately, the company has failed to maintain transparency on the most basic questions and concerns as to whether or not this is a smart investment for our state. What I’ve seen over the past few months has been an outright community relations disaster by this company that leaves legitimate questions on their ability to gain the trust and support of our state and local community.
“This is not the way that partnerships should work. It’s hard for me to support a project when there is a fundamental lack of trust between the company and the community — especially when our tax dollars are at stake.
“Because of the process legislative Democrats have chosen to move this initiative forward, I won’t have an opportunity to vote on this project, but I wanted residents to know where I stood and that I actively opposed this use of taxpayer dollars” Hauck said.
Congressman John Moolenaar also issued a statement following the vote:
"To take millions of dollars from Michigan taxpayers and give it to a subsidiary of a company that pledges allegiance to the Chinese Communist Party is a historic mistake by the Michigan legislature. This proposed facility will be 100 miles from Camp Grayling where the Michigan National Guard has trained military partners from Taiwan to prepare for possible CCP aggression. Yet, Michigan's state government leaders are siding with CCP-affiliated companies," said Moolenaar.
Some people also testified that the plant doesn't fit in the rural area and voiced concern about pollution.
The groundbreaking for the Gotion Inc. plant is slated for July, 2023.