Washington, DC, January 29 (ANI): Chairman John Moolenaar of the US House Select Committee on China has written to Ford Motor Company Chief Executive Officer Jim Farley, raising concerns over the automaker’s plans to produce data center batteries using technology from China’s Contemporary Amperex Technology Co. Ltd. (CATL), a company designated by the Pentagon as linked to the Chinese military.
According to a release issued by the Select Committee on China, Moolenaar sought clarification on Ford’s intention to enter the energy storage sector with CATL and questioned whether any changes were made to the company’s licensing agreement following the introduction of new eligibility restrictions for clean energy tax credits.
In the letter, Moolenaar noted that public statements from Ford indicate plans to repurpose existing US battery manufacturing facilities to produce lithium iron phosphate cells and grid-scale energy storage systems. This effort would rely on technical expertise licensed from CATL, which the US Department of Defense has designated as a Chinese military company.
He pointed out that Ford’s apparent shift in strategy followed the enactment of the One Big Beautiful Bill Act, which introduced new restrictions on eligibility for clean energy tax credits, including limitations related to licensing arrangements with prohibited foreign entities.
Moolenaar wrote that the statute disqualifies tax credits for licensing agreements that are modified after the law’s enactment or that involve ongoing technical dependence or revenue-sharing with a foreign-influenced entity. He said Ford’s revised business plan raises important questions about whether the original licensing terms have been updated, expanded, or otherwise altered to support the company’s increased focus on energy storage systems and data center markets.
The letter also requested clarification regarding reports of a possible new partnership between Ford and Chinese automaker BYD. The Select Committee’s release noted that Moolenaar had previously warned Ford earlier this year about potential risks associated with further collaboration with Chinese battery companies.
“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,” Moolenaar said in remarks dated January 15. He added that China has demonstrated in recent months its willingness to weaponize the auto supply chain, calling such partnerships a serious vulnerability.
Moolenaar emphasized that these risks would intensify if Ford were to enter into a new partnership with BYD, urging the automaker to work with US allies rather than adversaries, according to the committee’s release.
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