Ford battles U.S. lawmakers over Chinese firms involved with company's EV battery plant

The Blue Oval's battery plant is facing yet another hurdle.

Jan 31, 2024 - 00:30

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Ford battles U.S. lawmakers over Chinese firms involved with company's EV battery plant

The chairs of two separate U.S. House committees have asked the Biden administration, once again, to look into four Chinese companies that they say are involved in Ford's (F) - Get Free Report Blue Oval Battery Park plant in Michigan.

Chairman of the House Select Committee on China Rep. Mike Gallagher (R-WI)
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Representatives Mike Gallagher (R-WI) and Cathy McMorris Rodgers (R-WA) — who chair the House select committee on China and the Energy and Commerce Committee, respectively — urged the Commerce Department to investigate and impose export restrictions on said Chinese firms, noting that they were involved in the plant's design, construction and information technology (IT) workings, as per a letter from the lawmakers seen on January 29 by Reuters.

In their letter, the lawmakers state that said companies not only have direct ties to the ruling Chinese Communist Party (CCP), but also the Chinese military, alleged human rights abuses in the Xinjiang region of China and the government of North Korea.

In a statement to Reuters, Ford said that it follows "all government regulations across our business," adding, "Ford suppliers are required to meet our higher standards, including for protecting human rights, and obligated to extend those requirements to suppliers with whom they might work."

Ford F-150 Lightning assembly line at the Ford Rouge Electric Vehicle Center.
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Ford's battery plant has been under a microscope for its use of technology supplied by Chinese battery company Contemporary Amperex Technology Co, or CATL. In September 2023, the two lawmakers demanded documents from Ford and its partnership with CATL and threatened to summon CEO Jim Farley to testify before Congress.

The Blue Oval Battery Park plant has had its setbacks. The initial $3.5 billion invested into the plant was supposed to provide more than 2,500 jobs, but those figures have been scaled back to $2 billion and 1,700 jobs.

The lawmaker's letter said that Ford's agreement with CATL puts a Beijing-based company in charge of the concept design for the plant, and that same company is providing engineering design services to the Chinese military.

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Additionally, the two chairs wrote separate letters to the Treasury and State Departments asking for a probe into sanctions evasion by one of the named companies that they say will be providing IT tools for the plant, as it has ties to the government of North Korea.

"It is indefensible for Ford to use the same cloud integration and data provider that is linked to North Korean Ministry of Foreign Affairs sanctions evasion activity," the letter said.