State Rep. Ann Bollin today said the state’s move to hold Gotion, an electric vehicle battery manufacturer with connections to the Chinese Communist Party, in default on its state incentive agreement is the right decision and an important step toward restoring accountability in Michigan’s economic development system.

Bollin, who opposed the $175 million incentive package from the beginning, said she warned early on that the state was taking a major risk with taxpayer dollars.

“In 2022, I voted against sending $175 million in public funds to Gotion because the deal lacked transparency, strong safeguards, and meaningful accountability,” said Bollin, R-Brighton Township. “Two years later, the company has missed construction deadlines, failed to create jobs, and broken the promises made to the people of Michigan. This outcome is exactly why I spoke out against the project from the start.”

The state awarded Gotion the taxpayer-funded incentives through the Strategic Outreach and Attraction Reserve (SOAR) program to build a $2.3 billion battery plant near Big Rapids. The project was expected to create 2,350 jobs, but Gotion has repeatedly fallen short of its commitments.

On Sept. 17, the Michigan Strategic Fund notified Gotion that the state was placing the company in default. If the default was not corrected within 30 days, the grant agreement would be terminated and all funds disbursed would have to be repaid, including $23.6 million awarded to prepare the site for the project. Those 30 days expired last week.

“The state made the right call by holding Gotion accountable,” Bollin said. “Taxpayers deserve to know that their money is being used wisely and that companies must live up to their promises. This situation underscores exactly why I’ve been fighting for more transparency, audits and claw backs in our economic development programs, especially through the SOAR fund.”

Through the budget process, Bollin successfully implemented new reforms to ensure greater protection for taxpayers. Starting this year, her efforts helped change how budget earmarks are distributed so that payments are made as reimbursements – after work is completed or key benchmarks are met – instead of lump sums being handed out up front.

Bollin continues to advocate for similar changes to the state’s economic development programs.

“Michigan can no longer afford to gamble with taxpayer money,” Bollin said. “We need a system that rewards real results, not false promises. I’m committed to making changes that will return these dollars to the taxpayers and help restore trust in how Michigan does economic development.”