U.S. Rep. John Moolenaar (R-MI), chairman of the Select Committee on the Chinese Communist Party, has requested additional information from Ford Motor Company regarding its current and planned battery-related licensing and procurement arrangements involving Chinese entities.
The congressman is investigating the automaker’s plans to build data center batteries with technology from Contemporary Amperex Technology Co. Ltd. (CATL) — a Pentagon-designated Chinese military company — and Ford’s possible work with other Chinese automobile or battery manufacturers, such as BYD Company Ltd., a China-based multinational manufacturing conglomerate.
In a Jan. 27 letter sent to Ford CEO Jim Farley, Rep. Moolenaar questions Ford’s plan to enter the energy storage business with CATL, and if changes have been made to the company’s licensing agreement with CATL since new eligibility restrictions were put in place.
“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,” he wrote. “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 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, wrote Rep. Moolenaar, noting his concern about Chinese companies’ exploitation of key industries and ensuring associated implementation of the law and transparency regarding tax credit eligibility under recent reforms.
The lawmaker asked Farley to answer several questions by Feb. 4, including whether Ford is currently engaged in, or contemplating, any additional joint investment, battery supply, technology licensing, or technology transfer arrangements with other Chinese automobile or battery manufacturers.
“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,” wrote Rep. Moolenaar.