In a recent public letter addressed to Ford CEO Jim Farley, House Republicans Mike Gallagher and Jason Smith revealed that two congressional committees are currently conducting an investigation into the automaker’s licensing deal with Chinese battery maker CATL. The focus of the probe centers on Ford’s intentions to utilize CATL’s battery cell technology at an upcoming battery cell plant in Michigan, a project estimated to cost a significant $3.5 billion.
China Selector Committee
The chairs of the House Ways and Means Committee and Select Committee on China are leading the investigation and have requested that Ford provide all pertinent details regarding its agreement with CATL by August 10. Their demands extend beyond the scope of the deal itself, as they have also asked for communications between Ford and the Biden administration that relate to the CATL agreement. Additionally, the representatives are calling on Ford to clarify how the company will ensure that any imports from CATL, intended for producing LFP batteries in Michigan, will be free from any involvement with forced labor or inputs from Xinjiang.
Fake Information
When reached for comment, a Ford spokesperson chose not to divulge specific information about the congressional letter. Instead, the spokesperson reiterated a previous statement emphasizing Ford’s investment of $3.5 billion in the United States and its plans to exclusively own and operate the Michigan battery plant. This approach contrasts with some competitors who have opted to either build battery plants in other countries or solely import LFP batteries from China.
Investigation
Interestingly, this congressional investigation is not the only one launched by House Republicans recently. They have also announced a separate probe into U.S. venture firms’ investments in China, indicating a growing concern over the economic and technological ties between the United States and China.
The investigation into Ford’s deal with CATL comes at a time of heightened scrutiny and sensitivity surrounding trade relationships and supply chains, particularly in regards to China. With the involvement of two prominent congressional committees, the inquiry carries significant weight, and its findings could have implications for Ford’s battery production plans and the broader landscape of U.S.-China business relations.
Other Companies
Ford, like many other companies, is navigating complex global partnerships while also trying to address concerns about ethical practices and labor conditions in its supply chain. The call for transparency from congressional representatives signals a growing demand for accountability in business dealings, particularly when they involve critical components of emerging technologies like battery manufacturing for electric vehicles. As the investigation unfolds, stakeholders in the automotive industry and beyond will be closely monitoring the developments to gauge the potential impacts on trade policies, domestic production, and the broader geopolitical landscape.
