US lawmaker flags security, tax credit concerns over Ford's battery plans with China's CATL and possible BYD tie-up

Washington DC [US], January 29 (ANI): Chairman John Moolenaar of the Select Committee on China has written a letter to Ford Motor Company CEO Jim Farley about the automaker's plans to produce data centre batteries using technology from CATL, a Pentagon-designated Chinese military company, according to a release by the Select Committee on China (SCC).

In the letter, Moolenaar asks Farley about Ford's intention to enter the energy storage sector with CATL, and whether any changes were made to the company's licensing agreement with CATL after new eligibility restrictions came into effect, the SCC release said.

'Public statements from Ford indicate that the company plans to repurpose its existing U.S. battery manufacturing facilities to produce lithium iron phosphate (LFP) cells and grid-scale energy storage systems. This effort would leverage technical know-how licensed from Contemporary Amperex Technology Co., Limited (CATL), a Department of War-designated Chinese military company. Ford's apparent changes follow enactment of the One Big Beautiful Bill Act, which placed new restrictions on eligibility for clean energy tax credits, including limits related to licensing arrangements with prohibited foreign entities,' writes Moolenaar in the letter, as quoted by SCC release.

'In particular, the statute disqualifies tax credits for licensing agreements that are modified after the bill's enactment, or that involve ongoing technical dependence or revenue-sharing with a foreign-influenced entity. Ford's revised business plan raises important questions about whether the original licensing terms have been updated, expanded, or otherwise altered to accommodate the company's new focus on energy storage systems and data center markets,' he stated as cited by SCC release.

The letter also requests clarification on a possible new reported partnership between Ford and BYD, a Chinese automaker, following Moolenaar's warning to Ford earlier this year, SCC release stated.

'If reports that Ford is in discussions to potentially partner with a second Chinese battery company were to come true, it would diminish Ford's status as an iconic American company. China has already shown in recent months that it will weaponise the auto supply chain. This is a serious vulnerability and it would only get worse if Ford enters into a new partnership with BYD. Ford should work with our nation's allies, not our adversaries,' said Moolenaar on January 15, as noted by the SCC release. (ANI)

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