State Sen. Joe Bellino criticizes vote to give $175M for EV battery plant

LANSING — A Michigan Senate committee gave final legislative approval to allocate $175 million in state funds to a factory planned by Chinese manufacturer Gotion in northern Michigan that proponents say will create thousands of jobs and be a boon for the local economy.

Critics, though, say the move could pose a national security threat because Gotion Inc.'s parent company, Gotion High-tech, is based in China. Gotion Inc. is based in California.

The funds were approved in a narrow vote Thursday by the Senate Appropriations committee after multiple Democratic lawmakers sided with Republicans following concerns over Gotion's foreign ties and the plant's potential environmental impacts.

“We should be using our tax dollars to support small businesses and struggling families and build a positive economic environment that attracts new investments, jobs and talent,” state Sen. Joe Bellino Jr., R-Monroe, said in a release. “Instead, Senate Democrats continue to use the tired playbook of corporate welfare — this time giving millions of taxpayer dollars to a company with alarming ties to a hostile foreign government.

“Returning to the failed policies of Michigan’s Lost Decade is bad enough, but there are also serious concerns with the plant regarding national security, environmental protection, and return on investment.”

Bellino is not on the appropriations committee and did not vote on the measure.

The $2.4 billion Gotion project, which is planned on a large site in Mecosta County's Big Rapids, would create 2,350 jobs with average wages of $29.42 per hour, according to the company's proposal. A 30-year Renaissance Zone was approved by the state last year and will save the company an additional estimated $540 million. The factory will produce cathodes and anodes, two components that are key to electric vehicle batteries.

In a statement following the committee's approval, Jim Chapman, supervisor of Green Charter Township located near Big Rapids, said the Gotion plant will be the "largest single business investment in Mecosta County history," and is a "once-in-a-lifetime opportunity," for the community.

Before the committee's vote, community members spoke out regarding potential environmental impacts of the massive plant. One speaker, who said he owns an organic farm near where the plant would be built, expressed concerns over spillage destroying his crops.

Republican Rep. John Moolenaar, whose district includes Mecosta County, said in a statement Thursday that the appropriations committee's approval was a "historic mistake."

Bellino said China has a long history of industrial espionage and is increasingly working against America’s interests and fighting freedom in the world.

“The Gotion project is irresponsible and poses a great security risk, and I have sponsored legislation that would stop terrible projects like this from happening,” Bellino said.

Earlier this month, Bellino introduced Senate Bill 260, which would prevent foreign governments from purchasing farmland in Michigan, his news release said. To ensure all loopholes are closed, foreign government-affiliated enterprises and people acting on behalf of a foreign government or an affiliated company would also be prevented from making any farmland purchases.

"Despite what any current politician might say, there is no communist plot within Gotion to make Big Rapids a center to spread communism," Chuck Thelen, the company's vice president for North American operations, said earlier this month at a Green Charter Township meeting.

Thelen told the Senate committee Thursday that Gotion had also undergone a voluntary review by the Department of Treasury's Committee on Foreign Investment in the United States to clear up any concerns. The committee determined "that our proposed transaction was not subject to further review and we may proceed with the proposed transaction," Thelen said.

Democratic state Sen. Sarah Anthony, who chairs the appropriations committee, released a statement following the vote that it was committee members' responsibility to separate "fact from fiction and policy from politics," and that Gotion's voluntary actions had addressed any concerns.

The funds approved Thursday are part of the state's effort to attract large economic projects to Michigan. In February, the Michigan Strategic Fund approved a large tax incentive package to bring a $3.5 billion electric vehicle battery plant to the state, planned by Ford.

The Associated Press contributed to this report.

This article originally appeared on The Monroe News: Sen. Joe Bellino criticizes vote to give $175M for EV battery plant