‘There is no communist plot’: Gotion responds to criticism

Firm plans to build battery parts plant near Big Rapids

BY KURT NAGL

Gotion Inc.’s top North American executive said Wednesday that the Chinese company is targeting July to start construction on a planned $2.4 billion battery parts plant in the Big Rapids area.

But rst, the company and local ofcials supporting it are hoping to allay worries ranging from impact on the local water table and environment to ties to the Chinese Communist Party.

Chuck elen, Gotion’s North American vice president, tackled the CCP claims at the outset of a virtual panel discussion Wednesday evening focused on answering questions submitted by residents.

“ ere is no communist plot within Gotion to make Big Rapids a center to spread communism,” elen said on the call. “Never in my time with this company have I ever heard anybody mention anything about a party a liation.” e planned factory, which would produce anode and cathode materials for lithium-ion batteries in electric vehicles, has become a lightning rod for criticism since being announced last year. Gotion’s plant, along with Ford Motor Co.’s $3.5 billion battery plant with Chinese giant Contemporary Amperex Technology Co. Ltd. in Marshall, have stoked political tension from Lansing and Washington, D.C., to Beijing. elen sought to dispel the claim that Gotion must carry out the Communist Party agenda. Critics have raised questions about the company’s articles of association, which state as of July: “ e Company shall set up a Party organization and carry out Party activities in accordance with the Constitution of the Communist Party of China.” elen said those terms apply to parent company Gotion High-Tech Co. Ltd. but not the North American subsidiary established in California in 2014, which is building the plant near Big Rapids. elen said he will serve as plant manager overseeing operations and that parent company chairman and president, Zhen Li, has entrusted him to run it.

Wednesday’s panel discussion was initially planned to be in person but was changed to a virtual meeting because of safety concerns, underscoring how tense the situation in Mecosta County has become.

Jim Chapman, supervisor of Green Township, where the 2-millionsquare-foot plant would be erected, said he has received death threats over his support for the project and its promised 2,350 jobs.

“Right now, there’s so much misinformation out there, you would not believe what I’m having to deal with,” Chapman told Crain’s ahead of the panel discussion.

While the discussion took place, demonstrators took to a sidewalk in front of Ferris State University’s campus with signs protesting the battery plant, according to videos posted on Facebook by Randy Guppy Sr., who has been outspoken against the plant.

“He’s never ever made reference to a communist ideal or directive,” elen said of Li. “He has my trust. I think he’s an honest man.” e CFIUS review is being funded by Gotion, elen said. All the documentation needed for it will be submitted to the federal government by Friday, with a response due 30-45 days later. e company surveyed 44 locations around the U.S. before landing on the Big Rapids area site.

In an attempt to clear the air, Gotion applied for a review by the Committee on Foreign Investment in the United States — the same national security review demanded by Big Rapids Township, which has since been cut out of the project footprint due to opposition from board members.

“We will obey their conclusion and comply with their ndings,” elen said.

Over the past month, the Gotion plan went from being seemingly on the rocks to even bigger than anticipated. elen has stressed that it is still not a done deal. e Michigan Senate Appropriations Committee must still give nal approval for $175 million in state incentives for the project.

Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl