(Yicai Global) July 31 -- Gotion High-Tech, whose biggest investor is Volkswagen Group, has rebutted reports that the Chinese electric vehicle battery giant had revised the construction schedule of its USD2.4 billion battery factory in Michigan, The Paper reported.

Gotion could not disclose more information about the project, The Paper cited the Hefei-based firm as saying yesterday.

Michigan-based media Mlive reported on July 25 that Gotion has prolonged the start and end construction dates of the plant in Green Charter Township by one year, which is now expected to become operational by Dec. 31, 2031.

According to a statement released by Michigan Governor Gretchen Whitmer last October, Gotion will build a USD2.4 billion factory in Big Rapids to produce up to 150,000 tons of lithium-ion battery cathode material and 50,000 tons of anode material a year.

Michigan gave Gotion a USD125 million financial subsidy and USD540 million worth of tax breaks for projects lasting 30 years. The US federal government approved the battery project last month.

Gotion's global installed battery capacity jumped 29.1 percent to 5.3 gigawatt-hours in the five months ended May 31 from a year earlier to rank eighth worldwide, according to SNE Research.

In addition to Gotion, Contemporary Amperex Technology, China's largest battery producer, is partnering with Ford to provide technology for the US auto giant's USD3.5 billion battery plant. Envision AESC, an EV battery maker under Chinese green energy firm Envision Group, started building a plant in South Carolina in June that will start production in 2026.

The US Inflation Reduction Act, which came into effect last August, has imposed harsh restrictions on the local production of battery raw materials and components for US consumer purchases of clean energy vehicles, according to analysts. This has benefited South Korean firms, the biggest overseas rivals to Chinese battery companies, they added.

Gotion’s shares [SHE: 002074] rose 2.3 percent to close at CNY27.54 (USD3.85) apiece in Shanghai today.

Editor: Martin Kadiev