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State Representative Greg Alexander has commented on the recent decision by the Michigan Strategic Fund to issue a default notice to Gotion, Inc. The company failed to meet the requirements of a state-funded incentive agreement for its planned battery plant near Big Rapids. The project was initially promoted as a $2.4 billion investment, with $175 million in taxpayer incentives approved by the Legislature in 2023.

Alexander stated: “This is a win for Michigan taxpayers in the long run. It shows once again that corporate welfare is a failing strategy, protects our national security interests given Gotion’s ties, and highlights exactly why we need real economic development reform in Michigan."

He continued: “Many of these projects follow a familiar path. They promise hundreds or thousands of jobs, but we end up seeing delays, a lack of support from residents and communities where the project will be located, additional requests for even more taxpayer dollars, lawsuits that tie up our courts, and other issues that ultimately lead to promises not being kept and money being squandered."

“While this is a win for taxpayers, it should also be a lesson for legislators. We need real plans that focus on lessening burdensome regulation and creating an atmosphere that organically leads to job providers wanting to locate here. We need greater transparency and accountability for how these projects are vetted. Most importantly, we need plans that respect tax dollars and use them appropriately.”

The battery plant project faced several challenges including delays, opposition from local residents and communities, further financial requests from the company, legal disputes, and concerns about unmet commitments.