Chinese battery manufacturer Gotion says it abides by US laws, amid legal action over new project
Published: Mar 22, 2024 01:42 AM
Photo: VCG

Photo: VCG

Chinese battery manufacturer Gotion High-tech said that the company fully complies with US laws and regulations. It comes after the company reportedly filed a lawsuit against a local community in Michigan for breach of contract regarding supply of water for a new facility.

The Chinese battery maker said in a note sent to the Global Times on Wednesday that the company strictly complies with local laws and regulations, ensuring legal compliance when conducting business overseas.

"The progress of our overseas expansion can be followed through the information publicly released by the company. Any information that meets the requirements of a listed company for disclosure will be announced through the stock exchange," Gotion told the Global Times.

As an international enterprise, Gotion has always adhered to its commitment to accelerating its global layout, it added.

Reuters reported on Monday that Gotion has filed a lawsuit against Green Charter Township in Michigan, citing breach of contract over the connection of water lines to its planned $2.36 billion battery component plant in the state.

In the lawsuit, which was filed in a federal court in Michigan, Gotion said the township reneged on its contractual obligations after initially adopting a resolution approving the company's plans to connect a local water system to the project, Reuters reported.

This failure to honor the contract has effectively halted the entire project, Mo Ke, chief analyst at RealLi Research, a research and development institution in China dedicated to the lithium battery industry, told the Global Times.

Compared with other infrastructure projects, lithium battery production does not consume any additional water resources. However, water resources are vital when setting up lithium battery production facilities, he added.

Chinese experts criticized US efforts to create obstacles for Gotion's project, saying that it is another attempt to push Chinese companies out of the market.

The move is mainly driven by the US' desire to exclude Chinese firms from the high-end manufacturing chain in the US, Mo added, noting that there is more lenient treatment for companies form South Korea and Japan.

Gotion's project is a $2.36 billion lithium battery manufacturing plant, which is expected to create 2,350 jobs for the local community. It will also produce up to 150,000 tons of cathode material and 50,000 tons of anode material a year, according to public information released by the State of Michigan.