Washington, D.C. — House Energy and Commerce Committee Republicans, led by Chair Cathy McMorris Rodgers, wrote to Ford President and CEO James Farley regarding a new partnership with Chinese-owned Contemporary Amperex Technology Co., Limited (CATL) to build lithium iron phosphate batteries in the United States.
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BACKGROUND:
- Earlier this year, Ford announced it would invest $3.5 billion to construct a lithium iron phosphate battery plant in Marshall, Michigan.
- According to Ford, its wholly-owned subsidiary will manufacture the battery cells using Chinese company CATL’s technology and services.
KEY LETTER EXCERPTS:
“While Ford has labeled this project a ‘commitment to American manufacturing’ and asserts it will create 2,500 new American jobs, we are concerned that Ford’s partnership with a Chinese company could aid China’s efforts to expand its control over United States electric vehicle supply chains and jeopardize national security by furthering dependence on China.”
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“Additionally, Members learned at this hearing that Chinese companies often supply their own workers to projects in Latin America and Africa, reinforcing fears that CATL will import workers for this facility rather that creating jobs for United States workers.”
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“We seek to learn more about whether this partnership, and others like it, will potentially exacerbate our reliance on China. Should China gain control of domestic electric vehicle production, the United States would be exposed to serious national security risks at a time of escalating geopolitical tensions.”
The Members requested information and answers to the following questions by September 18, 2023:
- A copy of the complete licensing agreement between Ford and CATL, including any appendices, amendments, or addenda.
- All documents and communications exchanged between Ford officers or employees and officials, appointees, employees, contractors, or consultants of the United States government referring or relating to Ford and CATL’s partnership and eligibility for tax credits and federal incentives.
- Did Ford consider making a similar investment in a partnership with a non-Chinese company? If so, why did Ford ultimately decide to partner with CATL? If not, why did Ford not consider other partners?
- How many CATL employees will CATL supply to the Facility?
- What steps did Ford take to prevent or limit CATL’s ability to halt production unilaterally, such as at the direction of the Chinese government?
CLICK HERE to read the letter.
