U.S. Rep. Cathy McMorris Rodgers (R-WA), chair of the U.S. House Energy and Commerce Committee, led 25 of her Republican committee colleagues in questioning the Ford Motor Company’s partnership with a Chinese company.
Earlier this year, Ford announced it would invest $3.5 billion to construct a lithium iron phosphate battery plant in Marshall, Mich., where its wholly-owned subsidiary will manufacture the electric vehicle (EV) battery cells using technology and services provided by the Chinese-owned Contemporary Amperex Technology Co., Limited (CATL).
In a Sept. 1 letter sent to Ford President and CEO James Farley, Rep. McMorris Rodgers and the committee members noted that while Ford’s plan will create 2,500 new American jobs, they are concerned that the company’s partnership with a Chinese company could aid China’s efforts to expand its control over American EV supply chains and jeopardize national security by furthering dependence on China.
“We seek to learn more about whether this partnership, and others like it, will potentially exacerbate our reliance on China,” wrote Rep. McMorris Rodgers and her colleagues. “Should China gain control of domestic electric vehicle production, the United States would be exposed to serious national security risks at a time of escalating geopolitical tensions.”
The committee members also added that Chinese companies often supply their own workers to projects in Latin America and Africa, reinforcing fears that CATL will import workers for this facility rather than creating jobs for American workers, according to their letter.
“Reports also indicate that the desire to exploit federal incentives to promote domestic manufacturing and electric vehicle supply chains, particularly tax credits in the Inflation Reduction Act, factored heavily into this arrangement between Ford and CATL, raising questions about the nature and structure of this partnership,” they wrote.
To assist the committee in its oversight of this matter, the lawmakers requested that Farley provide several documents to them by Sept. 18, including a copy of the complete licensing agreement between Ford and CATL, including any appendices, amendments, or addenda. They also asked Farley to answer several questions, such as whether Ford considered making a similar investment in a partnership with a non-Chinese company, and, if so, what made Ford ultimately decide to partner with CATL.
Among the 25 other committee members who joined Rep. McMorris Rodgers in signing the letter were U.S. Reps. Bill Johnson (R-OH), Bob Latta (R-OH), Larry Bucshon (R-IN), Buddy Carter (R-GA), John Curtis (R-UT), John Joyce (R-PA), Kelly Armstrong (R-ND), Troy Balderson (R-OH), August Pfluger (R-TX), and Jay Obernolte (R-CA).