GOTION(SZ:002074) Guan Cha Zhe Wang·2025-10-29 23:00Core Viewpoint - Guoxuan High-Tech has confirmed the suspension of its battery factory project in Michigan due to a lack of consensus with local government on policy issues, following reports of opposition from local residents and political figures [1][4]. Company Summary - Guoxuan High-Tech is the seventh largest power battery supplier globally, with a reported battery installation volume of 25.1 GWh from January to August 2023, marking a year-on-year increase of 71.8% [3]. - The company had previously announced plans to invest $2.364 billion (approximately 16.78 billion RMB) in a battery materials factory in Michigan, which was expected to produce 150,000 tons of cathode materials and 50,000 tons of anode materials annually, creating 2,350 jobs [1][3]. - In addition to the Michigan project, Guoxuan High-Tech plans to invest $2 billion (approximately 14.2 billion RMB) in a lithium battery production line in Illinois, with an expected annual capacity of 40 GWh, and the first phase of the factory is anticipated to commence production in 2024 [3]. Industry Context - The Michigan project faced significant local opposition, partly due to the company's Chinese background, which has led to resistance from local politicians [3][4]. - The Michigan Economic Development Corporation (MEDC) indicated that Guoxuan High-Tech had not taken action on the project site for over 120 days, violating grant agreements, and had not met the criteria for state subsidies [5]. - The overall sentiment in the U.S. electric vehicle market has been affected by a decline in consumer enthusiasm and changes in government policies regarding electric vehicle subsidies, leading many companies to tighten spending on related projects [6].