‘NO GOTION’ policy limiting green energy credits passes House

TL/DR –

Chinese tech company Gotion’s proposed electric vehicle battery plant in Michigan is facing uncertainty due to a policy that would ban companies with ties to China from accessing green energy tax credits. This policy, introduced by U.S. Representative John Moolenaar as part of the Big Beautiful Bill Act, is aimed at companies with alignment to the Chinese government, arguing that such companies are a national security threat. Gotion, which received over $175 million in state incentives for their $2 billion plant, is currently suing Green Charter Township where the plant is located over a breach of contract, and work on the plant has been halted.

Gotion EV Battery Plant’s Uncertain Future Amid US House Policy

The future of a proposed electric vehicle (EV) battery plant by Chinese tech company Gotion in mid-Michigan is uncertain due to a policy barring companies with China ties from green energy tax credits. The policy was cleared by the U.S. House earlier this month.

Gotion’s US subsidiary’s plan to establish a $2 billion EV battery plant in Green Charter Township, Mecosta County, received over $175 million in state incentives.

The NO GOTION Policy within the Big Beautiful Bill Act

The NO GOTION policy, part of the Big Beautiful Bill Act introduced by U.S. Rep. John Moolenaar (R-Caledonia), would ban companies linked to the Chinese government from green tax incentives in the Inflation Reduction Act. The act is supported by Moolenaar, who calls for ending the Gotion project citing its ties to the Chinese Communist Party as a threat to national security.

A Foreign Agents Registration Act filing last year stated that “Gotion is subsidized partially with Chinese government funding.” The bill is currently being reviewed in the Senate.

Bipartisan Support and Opposition

This policy has bipartisan backing, with three Democratic House members cosponsoring the original NO GOTION Act. Ex-Rep. Elissa Slotkin (D-Holly) also proposed a bill to enhance the Committee on Foreign Investment’s power to review sales to China-based companies. However, neither the House nor the Senate version of this bill was passed.

Gotion is currently suing Green Charter Township over a contract breach, and the plant’s work is on hold.

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