- US House committees investigate Ford Chinese battery partnership

Two U.S. House of Representatives committees are investigating Ford Motor Co’s partnership with Chinese battery company CATL. Ford announced in February that it is investing $3.5 billion to construct a battery plant in Michigan using CATL’s technology. The Republican chairs of the House Ways and Means Committee and the Select Committee on China, Jason Smith and Mike Gallagher, have sent a joint letter to Ford demanding answers about the deal. They expressed concerns that relying on China for electric vehicle battery inputs would expose the company and U.S. taxpayers to the Chinese Communist Party’s politics. Ford has stated that it is reviewing the letter and will respond, emphasizing that it will own and operate the plant in the United States. The committees have highlighted that several hundred of the jobs at the Ford plant will be filled by CATL employees from China. The letter also raises concerns about CATL’s alleged divestment from companies in Xinjiang connected to forced labor practices. Human rights groups accuse China of abuses against the Uyghur population in Xinjiang, including forced labor. Congress has passed legislation that will restrict EV tax credits if any battery components are manufactured or assembled by a “foreign entity of concern.” Ford is awaiting guidance from the U.S. Treasury to ensure compliance with this requirement. The House letter expresses concerns that the deal could facilitate the onshoring of Chinese-controlled battery technology and raw materials while still benefiting CATL. Republican Senator Marcio Rubio has called for an investigation into the deal and introduced legislation to block consumer tax credits for EVs produced using CATL technology.