Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley on Tuesday urging the automaker to reconsider its business ties with Chinese companies. In the letter, Duffy said he had “profound concern” about Ford’s recent strategic decisions and argued they suggested the company was linking its future with Chinese state-backed enterprises.
Duffy specifically criticized several Ford arrangements involving Chinese firms. He pointed to Ford’s partnership with Geely, which allows the Chinese automaker to manufacture vehicles at a Ford plant in Spain. He also objected to Ford continuing to build some Lincoln vehicles in China through 2030. In addition, he challenged Ford’s technology licensing agreement with CATL, under which Ford is producing lithium iron phosphate, or LFP, batteries at a new plant in Michigan.
CATL is one of the world’s largest producers of LFP batteries, a chemistry that has become increasingly popular because of its durability and lower cost. Duffy said the Department of Transportation remained “deeply alarmed” by Ford’s reliance on licensed technology from CATL at the BlueOval Battery Park facility in Marshall, Michigan.
Ford responded that the facility is owned, operated, and staffed by the company. In a statement to InsideEVs, Ford said it is investing to build batteries in the United States and described the CATL deal as a limited technology-licensing and services agreement rather than a joint venture or foreign-owned manufacturing operation. The company also called Duffy’s letter a “wrongheaded attempt to capture headlines” and noted that the White House recently praised the battery plant in a press release.
The CATL-related arrangement has been politically controversial since the project was announced. The plant is now ramping up production and will supply LFP batteries for Ford’s upcoming Fathom electric pickup, which is expected to start around $30,000.
The letter comes amid broader opposition in Washington to Chinese automakers and vehicle technology. A bill that would bar companies with more than a 15% Chinese ownership stake from selling cars in the U.S. passed the Senate Commerce Committee in July with bipartisan support. Existing restrictions also include a 100% tariff on Chinese-made cars and limits on certain Chinese vehicle technologies.
Source: InsideEVs
