Youngkin Blocked Ford Battery Plant over China Concerns

Virginia Republican Governor Glenn Youngkin Because of national security concerns related to China, the state does not wish to be a part in Ford Motor Co.’s request for a manufacturing facility to produce batteries. An agreement exists between the automaker and a Chinese company.

“We felt that the right thing to do was to not recruit Ford as a front for China to America,” Youngkin stated this to reporters after his State of the Commonwealth address on January 11. Later, Richard Cullen, the governor’s chief legal counsel, told the Washington Post that the battery project involved “national security risk-type technology.”

His address Youngkin stated to the General Assembly that the risk linked to the Chinese Communist Party was a concern at the start of a new legislative sessions. “common sense,” Calling the CCP “a dictatorial political party that only has one goal: global dominance at the expense of the United States.”

He explained how to balance the risks of attracting businesses to Virginia with CCP-related national safety threats. “I’ve said before that I want ‘Made in America’ to mean ‘Made in Virginia.’ But let me be clear, ‘Made in Virginia’ cannot be a front for the Chinese Communist Party.”

Youngkin spoke out in support of a bill that would prohibit foreign entities linked to the CCP buying farmland Virginia “Virginians—not the CCP—should own the rich and vibrant agricultural lands God has blessed us with,” He concluded. “The stakes are too high, and the consequences are too great.”

Youngkin issued an Executive Order last month (pdf) to ban TikTok and WeChat apps on Virginia state-owned devices.

The Daily Caller It was first reported that Youngkin, who directed the Virginia Economic Development Partnership in December to remove Virginia as a location consideration for Ford’s battery plants and not submit an incentive package, had been appointed.

The agreement between Ford and China’s Contemporary Amperex Technology Co. Ltd. (CATL) to supply batteries to Ford’s electric vehicles would qualify CATL to receive lucrative production tax benefits under the new Inflation Reduction Act (IRA), according to a Bloomberg report. According to the report, Ford would own 100 percent of the plant while CATL would own the technology and operation of the facility.

CATL is the world’s biggest maker of batteries for electric vehicles, providing batteries for automakers such as General Motors (GM), Ford, and Tesla. The New York Times Reports in 2021 indicate that Beijing provided CATL with substantial support in the form of subsidies and soft regulation treatment such as changes in safety testing requirements.

The Times quoted Michael Dunne (an ex-GM executive in Asia), as saying: “CATL definitely seems like it’s the concept and creation of a master plan.” The newspaper also reported that President Biden’s son Hunter Biden was once on the board of CATL.

A Ford spokesperson explained to Virginia Mercury, regarding the CATL deal, that the plan was for the battery plant to be operational in 2026 and the Virginia Mercury would then take over. “talks with CATL continue.” A VEDP spokesperson said the organization wouldn’t comment on “unannounced projects.”

Terri Wu, a Washington-based freelance reporter covering China-related news for The Epoch Times is Terri Wu. Send tips to [email protected].