Michigan Files Antitrust Lawsuit Accusing Oil Majors of Suppressing Electric Vehicles

2026-02-05 companies

Lansing, Thursday, 5 February 2026.
Michigan accuses oil giants of operating a “cartel” to deliberately suppress electric vehicle technology, filing a federal antitrust lawsuit to combat artificially inflated energy costs and stifled innovation.

Allegations of a Decades-Long Conspiracy

In a significant escalation of legal hostilities between state governments and the fossil fuel industry, Michigan Attorney General Dana Nessel filed a federal lawsuit in late January 2026 against major energy corporations, including ExxonMobil (XOM), Chevron (CVX), BP (BP), and Shell (SHEL), alongside the American Petroleum Institute (API) [1][2][4]. The complaint, filed in the U.S. District Court for the Western District of Michigan, accuses these entities of violating federal and state antitrust laws—specifically the Sherman and Clayton Acts—by operating as a “cartel” to suppress the development of clean energy technologies [1][8]. The state alleges that this coordination was not merely passive but involved a strategic conspiracy dating back to at least 1979 to stifle the electric vehicle (EV) market and maintain dominance in the transportation sector [1][8].

The Economic Argument: Costs and Competition

Unlike previous climate litigation that focused primarily on environmental damages, Michigan’s legal strategy pivots heavily toward economic impact and consumer protection. Attorney General Nessel argues that the alleged collusion has directly contributed to an “energy affordability crisis” in the state [2][4]. Data cited in the proceedings indicates that electricity costs in Michigan have surged by nearly 120% over the last two decades, a rise the state attributes to the lack of competition from cheaper renewable alternatives rather than natural economic inflation [2]. Furthermore, the suit contends that these suppression tactics have stunted the local auto industry’s transition; as of 2025, electric vehicles and hybrids accounted for less than 4% of total registered vehicles statewide [2].

Federal Friction and Industry Defense

The filing of this lawsuit follows a contentious legal struggle between the state of Michigan and the federal government. In an unprecedented move, the Trump administration’s Department of Justice (DOJ) sued Michigan in January 2026 to prevent Attorney General Nessel from filing the case, arguing that state-level climate initiatives were preempted by federal law [1][3]. However, on January 24, 2026, U.S. District Judge Jane Beckering dismissed the DOJ’s preemptive strike, ruling that the federal government failed to demonstrate jurisdiction or standing to block a lawsuit that had not yet been filed [1][3][8]. This dismissal cleared the path for Nessel to proceed with the antitrust claims [3].

Sources

Climate Litigation Oil Majors