Lion Electric bankruptcy raises concerns over state's EV incentives
[May 09, 2025]
By Catrina Barker | The Center Square contributor
(The Center Square) – The bankruptcy of Lion Electric, which opened its
Joliet plant just two years ago, is raising concerns among grassroots
groups about the stability of Illinois' taxpayer-funded EV incentives.
Once a cornerstone of Gov. J.B. Pritzker’s green agenda, Lion Electric’s
Joliet plant will auction its equipment on May 15 after declaring
bankruptcy, despite a $50 million state incentive.
"Companies like Lion have recognized the many resources Illinois
provides, including our uniquely talented workforce, and together we
have set the state on a path to thousands more jobs and increased EV
capacity," Pritzker said in a 2023 news release about the plant’s
opening.
Darrell Bruck, co-founder of the Kankakee-based group Outrage, calls it
a “cautionary tale” for taxpayers.
"We’re very interested in what happened in Joliet because we believe
it’s connected to Gotion in Manteno, here in Kankakee County, where we
actively oppose the project. We see a parallel with Governor Pritzker’s
tax incentives for the electric bus manufacturer, which, just two years
later, has failed because the product was not viable,” said Bruck. “The
product was not viable, clearly, or they wouldn't be filing bankruptcy,
and we feel the same thing about Gotion.”
The group opposes the Gotion battery plant in Manteno, which got $125
million upfront from a $536 million state package. Bruck sees it as a
parallel to the Lion Electric case.
"We believe the $125 million given to Gotion upfront will be lost.
Governor Pritzker's total giveaway to Gotion amounts to $536 million,”
said Bruck. “Anything related to the electric battery vehicle industry
concerns us because if the industry isn't viable, then neither is Gotion
or the incentives given to them.”
According to Bruck, much of the upfront state money has already been
spent, largely on farmland acquisition, some of which he claims
benefited politically connected families in Manteno.
“Gotion has bought farmland from Manteno Mayor Tim Nugent’s family in
the Manteno area way over market value with some of the $125 million
Pritzker gave them upfront,” said Bruck. “He really enriched his
family.”
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Lion Electric announces an electric school bus manufacturing
facility near Joliet, Illinois in 2023
Illinois.gov
Kankakee County documents show Gotion acquired acres of farmland
from the Nugent family for over $21 million.
Bruck said electric vehicle battery maker Gotion hasn’t started
production and their sister plant in Michigan is basically dead.
“In January, Gotion’s first hire in Manteno, an engineer, was set to
oversee equipment installation and employee training for the plant.
However, he quit and took a job with a smaller company, which raises
concerns that he may have seen the writing on the wall,” said Bruck.
“[Former President Joe Biden] promised Gotion $7.5 billion in
incentives if they got up and running and hired the promised
workforce, but I’m sure [President Donald Trump] would stop them.
With everything going on, I believe they face a very uphill battle.
The bankruptcy of the [Lion Electric] Joliet plant proves they are
fighting for an industry that just isn’t viable.”
Complicating Gotion’s path forward, a series of lawsuits from the
group Concerned Citizens of Manteno are set to move forward in court
next week. Bruck said the suits claim the village improperly rezoned
land without proper oversight. Bruck noted more complications for
Gotion’s path forward.
“At the Village of Manteno meeting, it was revealed that union
electricians walked off the job because they were asked to work in
unsafe conditions, which they attributed to demands from the Chinese
contractors,” said Bruck. “The electricians refused to continue and
chose to walk off the job.”
Bruck doubts the project’s future, citing shifting priorities and
strong local pushback, including election wins by the anti-Gotion
Manteno Freedom Party.
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