Is this an ok place to ground to?

you need the get as much of the ring terminal touching real metal as possible to get the best ground possible

there looks to be a collar or something to prevent a ring terminal to go flush against that metal cross-bar...there would not be good enough contact between the bolt and the inside edge of the ring terminal.

drilling your own would allow you to SCRAPE OFF the paint and under coat where the ring terminal would lie against (~ the size of a quarter) then putting a bolt with lock washers to make use the connection stayed tight

 
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