State Seeks $23.7M Repayment as Gotion Challenges Default Determination
Update: Feb 7-20, 2026
Gotion, Inc., the developer of the proposed $2.36 billion electric vehicle battery plant near Big Rapids that was approved in 2022, is disputing The Michigan Strategic Funds’ efforts to recover $23.7 million in previously given grant money. The Michigan Strategic Fund issued a notice of default in September 2025, citing a lack of activity at the project site for three months. Recently, the Department of Attorney General weighed in and called for all Site Strategic Readiness Plan grant dollars given to the company to be repaid immediately.
In a letter to the state (first reported by Crain’s Detroit Business), Gotion asserted it is not in default under the grant agreement and instead said that project delays have occurred due to local opposition and legal challenges. The company claims that much of the funding has already been spent on buying land for the project and early construction. The only resolutions offered by Gotion included the township buying back the land for same amount that Gotion previously paid, or transferring the land to the state instead of repaying the grant funds.