Gotion High-tech, the world's eighth-biggest electric vehicle battery maker, does not expect its operations to be impacted by a warning from the securities regulator due to its late information disclosure regarding a project in the United States.
Gotion sticks to its global strategy with advances in market, capacity, product, technology, capital and supply chain along with efforts to develop the big markets of China, Asia Pacific, Europe and Africa, and the Americas to grow at home and abroad, The Paper reported yesterday, citing the Hefei-based company.
The firm revealed on Dec. 8 that the Anhui branch of the China Securities Regulatory Commission issued a warning letter to Gotion and summoned its Chairman Li Zhen and board secretary Pan Wang for talks as the battery maker failed to disclose the conditions of its deal with the government of Illinois on time.
On Oct. 12, Gotion published a statement to say that its unit and the state of Illinois signed a deal for the battery firm to build a plant in the midwestern state, complete with agreements of tax credits and the state's purchase of land and fixed assets. The statement failed to mention the scale of investment, subsidies, or production capacity.
The new USD2 billion battery factory project in Manteno, Illinois, is expected to start production in 2024. Already on Sept. 8, JB Pritzker, governor of Illinois, said that Gotion would be given USD536 million in subsidies and the Chinese firm is entitled to a tax deduction of USD213 million in the next 30 years due to the state's Reimagining Energy and Vehicles program.
"We believe that Gotion’s battery technology will help to boost e-mobility in North America and the economic and trade exchanges between China and the US," Chairman Li said on Sept. 8.
This is the second project that Gotion is planning in the US as on Oct. 25, the firm confirmed it would build a USD2.4 billion battery project in Michigan over a year after the governor of that state announced the plan.
Gotion was the world's eighth-largest battery maker based on installed capacity in the first 10 months of this year, according to SNE Research.
