U.S. House of Representatives committees have announced an investigation into Ford Motor Co’s partnership with Chinese battery company CATL. The committees are seeking answers from Ford regarding the deal, which was announced in February and involves a $3.5 billion investment in a battery plant in Michigan using CATL’s technology.
The Republican chairs of the House Ways and Means Committee and the Select Committee on China, Jason Smith and Mike Gallagher, sent a joint letter to Ford demanding clarification on the partnership. They expressed concerns about Ford’s reliance on China for inputs to produce electric vehicle batteries, stating that it could expose the company and U.S. taxpayers to the influence of the Chinese Communist Party.
Ford responded by stating that it is reviewing the letter and will provide a response. The company emphasized that it will own and operate the plant in the United States, instead of importing batteries exclusively from China like its competitors. Ford also mentioned that several hundred of the 2,500 jobs at the plant will be filled by CATL employees from China who will be responsible for equipment setup and maintenance.
The committees raised additional concerns in their letter, referring to public disclosures and media reports that suggest CATL divested its ownership stake in companies based in Xinjiang shortly after the partnership with Ford was announced. Xinjiang has been the subject of allegations of forced labor practices and human rights abuses against Uyghur inhabitants. Ford’s partnership with CATL could potentially raise questions about the use of forced labor in the supply chain.
The investigation by the House committees comes after Congress passed the $430 billion Inflation Reduction Act in 2022. The act includes provisions that will bar electric vehicle tax credits if any components of the vehicle’s battery were manufactured or assembled by a “foreign entity of concern.” Ford is still awaiting guidance from the U.S. Treasury to ensure that its partnership with CATL complies with this requirement.
Republican Senator Marcio Rubio has also expressed concerns about the Ford-CATL deal and has urged the Biden administration to investigate it. Rubio has introduced legislation that aims to prevent consumer tax credits for electric vehicles produced using CATL technology.
The investigation by the House committees reflects growing concerns about the influence of Chinese companies in the U.S. electric vehicle market and the potential risks associated with partnerships involving Chinese entities. As the U.S. seeks to expand its domestic battery production capabilities, ensuring the integrity of the supply chain and protecting against human rights abuses and forced labor practices will be critical considerations.
Original Story at www.newsnationnow.com – 2023-07-23 00:16:03
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