You've got to have better attorneys on board. It can't be this fly by the seat of your pants crap. Your contracts need to be 100% understandable and thorough - there should be no way anyone does not understand their obligations, or has wiggle room to say they did not understand. Of course, one side might be too optimistic and not thinking it through, but then its on them when their ass gets handed to them.
Sorry to see them fail - we need jobs in this country, and EV or ICE assembly tend to be good middle class jobs.