Chinese EV Battery Manufacturer Rejected Proposal: Alabama – Before proceeding with its contentious projects in Michigan and Illinois, Chinese electric vehicle battery manufacturer Gotion Inc. approached a small town in Alabama, has learned. The California-based firm, linked to the Chinese Communist Party (CCP), engaged with the Shoals Economic Development Authority last year for a project on the site of the shuttered FreightCar America factory in Muscle Shoals.
Local officials, after reviewing the proposal, rejected the project over national security concerns. Gotion later found success in Michigan and Illinois, securing commitments for a battery component facility and a battery cell factory, respectively.
The president of the Shoals Economic Development Authority, Kevin Jackson, refrained from commenting on the Muscle Shoals proposal, citing a nondisclosure agreement with Gotion. However, the rejection underscores growing bipartisan concerns about Chinese companies with CCP ties entering the U.S., with particular attention on potential national security risks.
Former U.S. Ambassador Joseph Cella, co-founder of the Michigan-China Economic and Security Review Group, questions the decisions of governors in Michigan and Illinois to welcome companies connected to the CCP. Security experts and Republican lawmakers have also raised alarms about Gotion’s ties.
Gotion High-Tech, Gotion Inc.’s parent company, has demonstrable ties to the CCP, as reflected in its corporate bylaws and educational activities. Despite assurances from Gotion defending its U.S. development plans, critics, including Senator Katie Britt of Alabama, emphasize the need for caution and vigilance against Chinese economic aggression.
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Gotion’s vice president, Chuck Thelen, asserts that the company’s parent is publicly owned, denying CCP influence in operations. However, the rejection in Alabama adds to the ongoing scrutiny surrounding Gotion’s projects and raises questions about national security implications.
The controversy surrounding Gotion highlights the broader challenges in balancing economic interests with potential security risks posed by Chinese companies entering critical industries in the U.S.
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Our Reader’s Queries
Why was BYD rejected?
Chinese investments raised security concerns, while DRI accused BYD of evading a $9 billion tax payment. In response, the Modi-led government mandated FDI approval for such investments in 2020.
Why is there no Chinese EV in the US?
The US has successfully created barriers to block Chinese electric vehicles. Under Donald Trump, a 25% tax was placed on Chinese car imports, which was supported by President Biden. Further, he refused to provide “Buy America” credits to Chinese EVs, which could have significantly lowered consumer costs.
Is China making batteries for electric cars?
According to the International Energy Agency (IEA) 2023 report, China holds the top spot in global EV battery production and has a strong hold on nearly every aspect of the EV battery supply chain.
Who are the Chinese EV battery suppliers?
CATL and BYD, the two Chinese industry leaders, currently control the worldwide electric vehicle (EV) and battery sectors. CATL, often associated with Uyghur coerced labor, is responsible for manufacturing one out of every three EV batteries. Meanwhile, BYD is poised to claim the title of the top EV seller on the global stage.