MECOSTA COUNTY — Local leaders have been working behind the scenes to bring a large international electric vehicle battery component production facility to the Big Rapids Township industrial park on 18 Mile Rd. in Big Rapids.
Officials of Big Rapids Township, Green Township, Mecosta County and Ferris State University, in coordination with The Right Place, Inc., an economic development corporation contracting with the county, have been negotiating with Gotion, Inc., a subsidiary of Guoxuan High-Tech Co., who plans to build the first battery component parts plant in the United States.
“This will be the biggest opportunity we have ever had in the area,” Big Rapids Township supervisor Bill Stanek told the Pioneer. “This is something we have been working on for 15 months. We have been negotiating back and forth, and now they have finally decided to go with Big Rapids.”
The company is an international company sold on the stock exchange in China and Switzerland, Stanek said. It is 70% owned by European auto makers and the board is comprised of members from China, America and European countries.
The vice president of the company that oversees North and South American production saw the for sale sign on the industrial park and reached out back in June 2021, Stanek said.
“We have been negotiating since. It has been up and down like a roller coaster,” he said. “They pulled out and they were going to build somewhere else. Then they came back to here. We were going to get an assembly plant first and now it turned out to be a component plant when they decided to do that in the U.S. It has been up and down a lot, but, finally, they have decided to come here.
“This will be the first battery component parts plant in the United States,” he continued. “This company coming to Big Rapids will be huge. It will be the largest investment north of Detroit.”
The company is expected to start out with around 800 employees and go up to 2,300 within 10 years, he said. In addition, every factory job is expected to create another 3.2 jobs within the community. It will be a $3.8 billion investment in the community over the next 10 years.
NEXT STEPS
“The first step will be to create a renaissance zone,” Stanek said. “Once we create that we can begin negotiating with the company for them to purchase the land. We were able to put together about 350 acres for them within the two (Big Rapids and Green) townships.”
A geographic renaissance zone is a region designated as virtually tax-free for any business in or moving into a zone, according to information on michiganbusiness.org. The zones were designed to provide selected communities with a market-based incentive of reduced state or local taxes to encourage new jobs and investment.
Stanek said the industrial park area was previously designated as a geographic renaissance zone, but it expired about two years ago.
“The Big Rapids Township board and the Green Township board have to sign the agreement for the renaissance zone and then the county has to approve it and send it to the state,” Stanek said. “Then the state strategic fund committee will act on it.”
He added this is a big incentive for the company to come to Big Rapids because it will save the company a lot of money.
“They are asking for 30 years, and I hope our boards will approve it,” he said. “This will be our first step. We will be dealing with the state on funding, so there’s a lot of things that will need to happen after that initial step.”
The state is offering a big package of tax incentives, as well, he said, and if the state makes the offer that it has agreed to, things can move ahead.
“There is a lot of work still to be done,” he said.
Once the renaissance zone is agreed upon, the next step will be approving the land transfer and whatever restrictions township officials may want on the buildings, Stanek said.
“After we have an agreement with them for the land, how much they will pay and all of that, then the building plans and sites plans will go to the planning commission,” he said. “Anywhere throughout the process anyone can say no. It is by far not a done deal. We are at the first step and if we okay this then we can start playing ball with them. We have a lot of decisions to make over the next few months, probably be the biggest decisions for any board that we have had.”
Stanek added the investment in the area will have a huge impact on Ferris State University, as well, and university officials have been involved in the negotiations from the start.
“This will help Ferris be set up as an electric vehicle manufacturing training facility,” he said. “They will have programs for electrical vehicles, program for batteries. It will really put Ferris on the map. One of the reasons the company chose Big Rapids is because of Ferris.”
Green Charter Township supervisor Jim Chapman said FSU has been an extremely positive advocate during the negotiations, and what they offered had a lot to do with “putting the deal over the top.”
“This is a multi-generational opportunity that will not only impact our township, it will impact our county, our region and our state,” Chapman said. “This is off the charts huge.”
He added the increased employment opportunities will impact the area for housing and businesses such as gas stations, restaurants and other types of things.
“Our little community may see some growth, but due to the location, I felt the lifestyle of our people will be protected,” he said. “That was one of the things I considered when deciding on this.”
PREPARED FOR THIS OPPORTUNITY
Randy Thelen, president and CEO of The Right Place, Inc., told the Pioneer via email that the site in the Big Rapids area, which for the past 25 years has been assembled, developed and marketed for industrial development, is being considered by one of the 10 largest advanced battery manufacturers in the world for a new battery production facility.
“The community has been prepared for an opportunity like this to materialize to utilize the infrastructure, airport, access to freeways and locally trained talent pool, Thelen said. “Local and state economic and municipal leaders, as well as Ferris State University, have been working diligently with the region’s best interest in mind as it explored this opportunity and are looking forward to disclosing more information and engaging the public.
“As the automotive industry undergoes a transformation, companies serving that sector often move at a rapid pace to accommodate emerging needs,” he continued. “As a result, once a decision is made to invest in a new facility, a company will work quickly to bring a factory online. That is very much the case with this opportunity. However, all parties involved understand there are still numerous processes and steps to be taken before this project becomes a certainty. We remain hopeful to announce more details soon on this project that would position the region at the center of West Michigan’s growing mobility and EV sector.”
Mecosta County Administrator Paul Bullock added, “In conjunction with our partners at Big Rapids Charter Township, Green Charter Township, MCDC, The Right Place, and MEDC, we’re actively working to make this extraordinary project a reality for Big Rapids. We have tentatively scheduled a meeting Monday the 26th to consider a renaissance zone on the property, and once the renaissance zone application is received, we will confirm that meeting. We look forward to sharing more about this once-in-a-century opportunity for Big Rapids area in the coming days.”
A joint meeting with the Big Rapids Township board, the Green Township board, and the Mecosta County Commissioners is scheduled for 7 p.m. Sept. 26, at a location still to be determined.
Following the meeting next week, Stanek said, they will be holding public forums to get community feedback and provide the public with information as they move forward on the project.
