Dozens of Republican House Energy and Commerce Committee members are seeking to review the licensing agreement between Ford Motor Co. and a Chinese electric vehicle (EV) battery maker.
In a letter sent to Ford CEO James Farley, the Republicans, led by Committee Chair Cathy McMorris Rodgers (R-Wash.) and Oversight Subcommittee Chair Morgan Griffith (R-Va.), asked for a copy of the licensing agreement and all of Ford’s communications on the deal’s eligibility for tax credits.
The lawmakers were concerned that Ford’s deal with the Chinese EV battery maker “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.” They wrote that such national security risks would become “serious” “at the time of escalating geopolitical tensions.”
In February, Ford announced that a new $3.5 billion plant would be built in Marshall, Michigan, 100 miles west of Detroit, to produce lithium-iron-phosphate batteries, better known as LFP, a type of battery that’s cheaper but less energy-dense than the nickel-cobalt-manganese batteries that currently dominate the market.
A wholly owned subsidiary will own the factory and employ the workers, Ford said, while China’s Contemporary Amperex Technology Co. Ltd. (CATL), as part of a licensing agreement, will provide the EV battery technology, some equipment, and workers. CATL is the world’s largest manufacturer of EV batteries and is known for its dominance in LFP batteries. Ford expects production to begin in 2026, with the plant estimated to produce enough batteries for 400,000 EVs each year.
House Energy Committee Republicans further questioned Ford’s decision-making process and the potential exploitation of federal incentives under the IRA, designed by Congress to promote domestic EV supply chains.
A Ford spokeswoman told The Epoch Times in an email: “When we formally receive the letter, we’ll respond and again correct rampant misinformation about this project.
“Here are the facts: Ford alone is building and will own and run this battery plant in Michigan. We’re doing that instead of putting a Ford battery factory in another country, or exclusively buying these batteries made in China, like our competitors do. Ford has no ‘partnership’ with CATL; they won’t own any portion of the plant. We’re licensing their battery cell technology for use by Ford in the U.S. and will contract with them for specific services, nothing more.
“The project will create 2,500 new American jobs and help strengthen U.S. manufacturing. It’s a big win for our customers, our country, and our business.”
About two months ago, Reps. Mike Gallagher (R-Wis.) and Jason Smith (R-Mo.), the respective chairmen of the House Select Committee on China and the House Ways and Means Committee, also wrote to Mr. Farley, seeking to review the licensing agreement.
