The Department of Defense has added Chinese battery manufacturer CATL to its list of military-linked companies, casting a shadow over its partnership with Ford on a $3.5 billion electric vehicle factory in Michigan. The project, championed by Gov. Gretchen Whitmer (D) with nearly $2 billion in state incentives, is now under intense scrutiny.
CATL has been a dominant force in global EV battery production and is closely tied to the Chinese Communist Party (CCP). Zeng Yuqun, the company’s founder, serves on a CCP advisory committee, which has fueled concerns about CATL’s alignment with Beijing’s strategic goals. The Pentagon’s designation highlights the risks of engaging with companies linked to foreign adversaries.
Ford's Battery Plans at Risk With CATL Security Listing
Battery giant added to DoD list alleging companies are working with Chinese military puts automaker's battery manufacturing plant under the spotlight.https://t.co/CCmAXbI7Px #Automotive #AutomotiveTechnology #IndustryNews— AutoTech: Events (@AutoTechEvents) January 8, 2025
Ford initially announced the Michigan factory in early 2023, planning to create 2,500 jobs and expand EV battery production. However, Ford downsized the project later that year, citing reduced demand for electric vehicles. The Pentagon’s classification of CATL adds another layer of complexity to the venture.
The blacklisting of Chinese battery maker CATL by the US government is a big setback for the US EV market, especially, Ford.
CATL owns groundbreaking EV battery technology (LFP) which Ford has been dying to gain access to for years with little success. 1/🧵
— Tiro GT 🥐 🇯🇴 (@TiroMokoditoa) January 8, 2025
Rep. John Moolenaar (R-MI) called the partnership a significant risk to U.S. national security, pointing to CATL’s CCP affiliations. He emphasized the importance of monitoring foreign investments in critical industries to safeguard American interests.
The saga of the corrupted “deal” led by @GovWhitmer @MEDC @QuentinMesserJr @jimfarley @Ford, et al, and PRC-based and CCP-tied @catl_official careens on.
The latest in this article in today’s @detroitnews.👇
This is why the evergreen headline of the article by @kurt_nagl… pic.twitter.com/SGwG7DEGtl
— Michigan-China Economic and Security Review Group (@MCESRG) August 19, 2024
Michigan’s support for the project has drawn criticism, with some accusing state officials of failing to adequately assess CATL’s background. Reports from 2021 revealed that CCP-linked investors held stakes in CATL, further amplifying concerns over the company’s influence.
US lawmakers are going after CATL accusing the battery giant of having direct ties to the Chinese military, the North Korean dictatorship and human rights abuses in Xinjiang. CATL is Ford's partner on its $2bn Michigan plant and at stake is tax subsidies for Dearborn to build the… pic.twitter.com/QhSO9q5OQC
— Frik Els (@frikels) February 2, 2024
The factory was intended to produce 35 gigawatt-hours of batteries annually, a capacity that would significantly enhance Ford’s position in the EV market. The Pentagon’s designation has now intensified scrutiny of the project and its implications for U.S. economic and national security.
Who uses CATL batteries?
Automotive Sector
Tesla: Supplies LFP batteries for entry-level Model 3 and Model Y vehicles.
Ford: Batteries for Mustang Mach-E and F-150 Lightning.
BMW: Supplies batteries for BMW's electric vehicle lineup.
General Motors (GM): Provides batteries for…— Toni Mikkola 🏴☠️ (@virtaava) January 7, 2025
Biden allowed CATL a CCP owned company to partner with Ford on a battery plant near the Pentagon🤦🏼♀️. China is playing the Biden admin with this ridiculous green agenda. Thankfully Virginia’s governor nixed it. There is nothing green about this agenda except cash going to the…
— StaceyWallen✌🏼❤️🇺🇸 (@stacey_wallen) February 26, 2023
Pentagon adds world’s largest EV battery maker to blacklist, posing problems for Tesla, Ford, and GM. The Pentagon's running list of companies with ties to the Chinese military now includes CATL, an integral partner to some U.S. automakers. https://t.co/gJ77RMfgqg pic.twitter.com/uWJcKFtahX
— RenewableEnergyWorld (@REWorld) January 7, 2025
Ford EV Partner CATL Debuts LFP Battery With 621 Mile Range https://t.co/iYlNUjdsPC pic.twitter.com/5aV1Uf5J0h
— Ford Authority (@FordAuthority) April 26, 2024
