Lawmakers want to review Ford’s deal with Chinese battery maker.
Lawmakers Seek to Review License Agreement Between Ford Motor and Chinese Battery Maker
U.S. lawmakers are concerned about the license agreement between Ford Motor and a Chinese battery maker, fearing that it could contribute to China’s dominance in electric vehicle battery technology and increase America’s reliance on Chinese raw materials. The lawmakers also raised concerns about the Chinese battery maker’s supply chain in Xinjiang, which may involve forced labor, potentially violating the Uyghur Forced Labor Prevention Act.
In February, Ford announced plans to build a new $3.5 billion plant in Marshall, Michigan, to produce lithium-iron-phosphate batteries. Under a licensing agreement, China’s Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest manufacturer of EV batteries, will provide the technology, equipment, and workers. The lawmakers worry that this deal may prioritize the interests of Ford and CATL over American taxpayers.
Concerns Over China’s Industrial Plan
The Chinese government’s industrial plan, known as “Made in China 2025,” aims to establish China’s dominance in high-tech manufacturing. The EV battery industry is a strategic sector in this plan. CATL, the Chinese battery maker involved in the Ford deal, has benefited from CCP subsidies and policies that restricted foreign competition in the Chinese EV battery market.
During a meeting with CATL chairman Zeng Yuqun, Chinese leader Xi Jinping advised him to have an “exit strategy” to avoid being wiped out in a competitive market. This highlights the Chinese government’s concern about maintaining dominance in nascent industries.
Ford’s Response to Lawmakers
Ford has not commented directly on the lawmakers’ concerns but stated that it is reviewing the letter and will respond soon. The company emphasized that the new battery plant in Michigan will create jobs, strengthen domestic manufacturing, and reduce carbon emissions. Ford sees this investment as beneficial for the country, the planet, and its own business.
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