Michigan Dem AG Sues Oil Companies, Calls Them ‘A Cartel’ That Conspired To Stifle EV Market

Michigan’s leftist Attorney General Dana Nessel filed a lawsuit on behalf of Michigan residents on Friday, arguing that multiple oil companies violated antitrust laws and conspired to harm the renewable energy and electric vehicle markets.

The lawsuit alleges that BP, Chevron, ExxonMobil, Shell, and the oil industry association, the American Petroleum Institute, acted “as a cartel” to go after renewable energy sources and “restrain the emergence of electric vehicles.” The alleged conspiracy has caused Michigan residents to “suffer artificially high home and transportation energy costs,” according to Nessel.

“Specifically, by suppressing innovation and investment in renewable energy, EVs, and EV infrastructure, Defendants have artificially reduced the output of electricity as a substitute for gasoline and other energy sources,” the lawsuit states. “This restraint not only eliminated competitive pressure that would have lowered prices, but also deprived Michigan consumers of meaningful choice, forcing them to buy primary and transportation energy products at supracompetitive prices and with additional costs in the form of negative externalities.”

Critics of the EV push have argued the opposite of what Michigan claims in the lawsuit, saying that in recent years, the federal government and some state governments have artificially propped up the EV market in an attempt to encourage Americans to give up gas-powered vehicles.

American automakers, such as Michigan-based Ford and General Motors, have recently dialed back their investments in EV production due to low demand and high manufacturing costs. Last year, the EV market took a hit when President Donald Trump ended the Biden-era EV tax credit, which encouraged Americans to buy alternatives to gas- and diesel-fueled vehicles.

Nessel’s lawsuit accuses the oil companies of violating the Sherman Antitrust Act, the Clayton Antitrust Act, and the Michigan Antitrust Reform Act, which prohibit monopolies and anti-competitive practices. The state of Michigan is demanding a jury trial.

“Michigan is facing an energy affordability crisis as our home energy costs skyrocket and consumers are left without affordable options for transportation. Whether you own a home, a small business, or run a large corporation, rising energy and transportation costs harm everyone,” Nessel said.

The Daily Wire reached out to each of the oil companies accused by Michigan in the lawsuit.

Chevron counsel Theodore J. Boutrous Jr. said that courts have dismissed similar lawsuits in multiple states, adding that Michigan’s lawsuit “ignores the fact that Michigan is highly dependent on oil and gas to support the state’s automakers and workers,” The Detroit Free Press reported.

Ryan Meyers, general counsel for the American Petroleum Institute, added, “These baseless lawsuits are a coordinated campaign against an industry that powers everyday life, drives America’s economy, and is actively reducing emissions. We continue to believe that energy policy belongs in Congress, not a patchwork of courtrooms.”