Gotion Inc. says a $2.4 billion, 2,350-job electric vehicle battery facility can move forward after a federal agency determined the project is outside its jurisdiction.
The U.S. Department of Treasury’s Committee on Foreign Investment – an agency tasked with assessing national security risks – determined the purchase of land in Mecosta County is not a covered real estate transaction under the Defense Production Act of 1950, Gotion announced this week.
“We voluntarily submitted all the needed documents to the U.S. Department of Treasury Committee on Foreign Investment in the U.S. to be transparent and accountable and received the response that it is not a covered transaction,” said Chuck Thelen, vice president of Gotion Inc. North American Manufacturing.
If CFIUS determines there are no national security risks with a covered transaction, then projects can move forward. But if the agency decides a transaction presents national security risks, then the federal government may “enter into an agreement with, or impose conditions on, parties to mitigate such risks or may refer the case to the President for decision,” according to the Treasury Department.
A construction timeline is pending while Gotion Inc. acquires land for the battery parts plant.
Related: ‘No communist plot:’ Gotion addresses claims about Michigan battery plant
Criticism has swirled around the battery plant because Gotion Inc. is a U.S. owned subsidiary of Chinese battery manufacturer Gotion. Opponents to the project are pushing for Gotion Inc. to disclose what documents it submitted for the federal review.
“Without the public knowing what was submitted to CFIUS by Gotion and its attorneys and what was sent back, we are reserving judgment on the apparent response from the Department of Treasury,” said former United States Ambassadors Peter Hoekstra and Joseph Cella in a statement.
Cella and Hoekstra, both appointed by former President Donald Trump, are behind the recently formed Michigan - China Economic and Security Review Group.
Thelen has repeatedly pushed back on claims that the Chinese government is involved in the Gotion battery plant. He said “there is no communist plot within Gotion to make Big Rapids a center to spread communism” during an April panel.
U.S. Rep. John Moolenaar, R-Midland, has also been a vocal critic of the Gotion deal.
“Today’s announcement from Gotion is not an approval from CFIUS, but another example of the broken CFIUS process where the government claims deals are outside its jurisdiction,” he said in a statement.
Michigan awarded Gotion Inc. a $715 million incentive package including a 30-year tax break valued at $540 million and two grants totaling $175 million. Senators OK’d grants in April despite backlash to the project. A couple hundred people rallied at a horse farm two days after legislators approved transferring the funding.
More on MLive:
Gotion pauses step of Chinese-linked plant to convince Michigan locals
Michigan gives $175M to Gotion electric vehicle project despite backlash
Hundreds rally at Michigan horse farm to oppose Gotion battery plant