Ford's Battery Partnership with China's CATL Under Scrutiny by US Lawmaker

Ford's collaboration with Chinese battery company CATL is under investigation by a U.S. House committee. Concerns have been raised over the partnership's impact on energy storage projects and possible updates to licensing agreements amid new legal restrictions. Ford plans US battery plant expansions, emphasizing job creation and energy security.

A U.S. House committee chaired by a Republican legislator is closely examining Ford's strategy to convert its current U.S. battery factories to produce lithium iron phosphate cells and large-scale energy storage solutions. This is part of Ford's partnership with China's CATL, a powerhouse in the battery industry.

In a letter addressed to Ford CEO Jim Farley, Representative John Moolenaar expressed concerns about Ford’s venture into the energy storage market using CATL’s technology and questioned recent changes to their licensing agreement after last year's new regulatory restrictions.

Ford aims to expand battery production in the U.S., framing it as a boost to energy security and local economies by creating high-skill jobs. The company clarified its plans for production facilities in Kentucky and Michigan, projecting an operational start within 18 months, which comply with tax credit regulations.