State Rep. Greg Alexander today issued the following statement after reports that the Michigan Strategic Fund issued a default notice to Gotion, Inc. for failing to adhere to a taxpayer-funded incentive agreement involving a battery plant project near Big Rapids. The project was originally marketed as a $2.4 billion investment, and $175 million in taxpayer incentives for the project were approved by the Democrat-controlled Legislature in 2023:

“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.

“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.”