Lawmakers in Washington, DC reported as set to investigating Ford’s partnership with Chinese battery company CATL. Based on ReutersTwo separate House committees will review the $3.5 billion deal Ford made to built a battery plant in Michigan using technology from CATL.
Jason Smith and Mike Gallagher, Republican chair of the House Ways and Means Committee and the China Select Committee, wrote a joint letter “asking” Ford to answer questions. about deathl with the world’s largest battery manufacturer. The dynamic duo has clearly warned that if the company is too dependent on China for inputs for production eclectic car battery“The company will expose itself and US taxpayers to the whims of the Chinese Communist Party and its politics.”
Ford told Reuters it was reviewing the letter and would respond. They emphasized that they will own and operate the plant in the US instead of building it elsewhere and will not exclusively import lithium iron phosphatase batteries. from China “just like our competitors do.”
According to the outlet, the two committees asserted that hundreds of the 2,500 jobs at the plant will be filled by CATL employees from China, who will be responsible for setting up and maintaining the plant. The committees are also concerned about CATL’s previous alleged stake in a company with a history of human rights issues.
The letter said public disclosures and media reports showed that shortly after Ford and CATL’s partnership announcement, “CATL took steps to maintain effective control while apparently divesting ownership” in Xinjiang-based companies allegedly involved in forced labor practices.
Human rights groups accuse Beijing of abusing Uighurs in Xinjiang, including the mass use of forced labor in concentration camps. China denies the allegations.
Last year, the National Assembly passed President Joe Biden’s $430 Billion Inflation Reduction Act that would – in the future – disallow EV tax credits if any battery components were manufactured or assembled by a “relevant foreign entity”. You know, like China. Unfortunately for Ford, the automaker is said to be still waiting for guidance from the US Treasury Department on whether its partnership with CATL meets this requirement.
“We are concerned that this arrangement may simply facilitate the transfer of part of the battery technology, raw materials and personnel controlled by the People’s Republic of China while collecting tax credits and transferring funds back to CATL through the licensing agreement,” he said. letter from the House of Representatives said.
