【Text by Observers Network, Pan Yuchen, Editor by Gao Xin】Regarding the previous online rumors about Guoxuan High-Tech suspending the construction of a battery factory in Michigan, USA, on October 28, Guoxuan High-Tech confirmed that due to the lack of consensus with the local government on policy issues, the factory planned in Michigan has been suspended.

Previously, according to Reuters, the Michigan state government announced on October 23 local time that Guoxuan High-Tech had abandoned its plan to build a battery factory in the town of Green, and the state government had also suspended the disbursement of subsidies to the company.

This project was first announced by the Michigan state government in October 2022, where Guoxuan High-Tech would invest 2.364 billion US dollars (approximately 16.78 billion yuan) to build a battery material factory, planning to produce 150,000 tons of positive electrode materials and 50,000 tons of negative electrode materials annually, which is expected to create 2,350 jobs locally.

Guoxuan High-Tech, Visual China

Guoxuan High-Tech is the seventh largest power battery supplier globally. Data from the South Korean research institution SNE Research shows that from January to August this year, Guoxuan High-Tech's power battery installation volume reached 25.1 GWh, an increase of 71.8% year-on-year.

In October 2023, Guoxuan High-Tech issued a statement confirming the Michigan battery material project and had completed the purchase of land and the signing of agreements with the state government. The project plans to use about 276.37 acres of land, with the construction period lasting until the end of 2031; at the same time, Guoxuan High-Tech also announced that it intends to invest 2 billion US dollars (approximately 14.2 billion yuan) in Illinois, USA, to build a lithium battery production line project, with a planned annual capacity of 40 GWh, and the first phase of the factory is expected to start operation in 2024.

In the same December, the first battery pack production line at Guoxuan High-Tech's factory in Fremont, California, officially started production. This was the first project of Guoxuan High-Tech to be put into operation in the United States, with a planned capacity of 1 GWh, mainly producing portable and home energy storage products.

However, since its announcement, the plan to build a factory in Michigan has faced opposition from some local residents. Moreover, due to Guoxuan High-Tech's Chinese background, its projects in the United States have also been resisted by many local politicians.

Just this September, a legislator claimed that China maintains "effective control" over the factory through multiple individual shareholders. In particular, John Moolenaar, a Republican member of the Michigan House and chairman of the special committee on China, praised the government for withdrawing support for Guoxuan High-Tech's project. Previously, he had incited residents of Green to oppose the project and advocated that the U.S. government prohibit subsidies for Chinese battery manufacturers like Guoxuan High-Tech.

Meanwhile, the Michigan Economic Development Corporation (MEDC) sent a letter to Guoxuan High-Tech, stating that it had taken no action at the project site within 120 days, violating the grant agreement, and gave Guoxuan High-Tech 30 days to resolve the breach of contract.

MEDC also stated that Guoxuan High-Tech never met the $125 million (approximately 887 million yuan) grant criteria for a "critical industry project," so this funding was never disbursed. In addition, MEDC also pursued the 23.6 million dollars in state grants used to purchase local real estate.

Guoxuan High-Tech responded by accusing the company of abandoning the project as "completely wrong," and said that Guoxuan High-Tech has had to endure a "series of attacks" from the local area since the project started. Guoxuan High-Tech also suggested that the state government suspend the declaration of its breach for six months to allow both sides to have an "open and honest discussion" on the feasibility and long-term plans of the project.

Benjamin Howes, General Manager of Guoxuan High-Tech's U.S. Government Affairs Department, said that Guoxuan High-Tech remains firmly committed to promoting the mission of the U.S. clean energy future, including advancing the factory plan in Illinois, but was unwilling to answer specific questions about the Michigan factory.

However, with the weakening enthusiasm of American consumers for electric vehicles, and the change in electric vehicle policies by the Trump administration, including the cancellation of a series of subsidies and tax credits, in recent years, many companies in the United States have further tightened their spending on electric vehicle businesses and postponed or canceled related factory projects.

It is worth noting that German automaker Volkswagen is the largest single shareholder of Guoxuan High-Tech, holding about 30% of the shares. However, Volkswagen did not comment on this matter.

This article is an exclusive work of Observers Network. Without permission, it cannot be reprinted.

Original: https://www.toutiao.com/article/7566779975148306954/

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