Ford is facing mounting heat from the Trump administration and congressional Republicans over accusations that the Detroit automaker is tying its future too closely to Chinese companies — including through battery technology, manufacturing partnerships and potential supply deals.
Transportation Secretary Sean Duffy has zeroed in on Ford’s reliance on technology licensed from Chinese battery giant CATL at its Michigan battery factory, its planned joint venture with Chinese automaker Geely in Spain and reported talks with BYD over batteries for hybrid vehicles.
Duffy also accused Ford CEO Jim Farley of pitching administration officials on a framework that could facilitate Chinese automakers setting up US manufacturing through American-controlled joint ventures — an assertion Ford has flatly disputed.
The criticism escalated Wednesday when Sen. Rick Scott (R-Fla.) praised Duffy for “sounding the alarm about Ford’s risky ties to [Chinese Communist Party] companies,” according to Reuters.
The House Select Committee on China likewise took aim at Ford, posting company statements alongside reports about its Chinese business relationships under the heading: “This is what Ford says vs. what it does.”
Duffy outlined his concerns in a Tuesday letter to Farley, saying Ford’s decisions raised “profound concern” about its manufacturing, supply chain and reliance on technology from China.
At the center of the fight is Ford’s BlueOval Battery Park Michigan in Marshall, where Ford manufactures lithium-iron phosphate batteries using technology licensed from CATL.
CATL has been placed on the Pentagon’s Section 1260H list of companies accused of ties to China’s military — adding to longstanding scrutiny in Washington of Ford’s arrangement with the battery giant.
Ford insists the structure is being mischaracterized.
“The CATL arrangement is a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation,” Ford said in its response to Duffy.
“Ford owns the plant, controls the operation and employs the workforce.”
While CATL does not own Ford’s Michigan factory, the administration’s concern is that Ford remains dependent on Chinese intellectual property and technical know-how even while manufacturing batteries on American soil.
Congressional investigators have previously sought Ford’s complete CATL licensing agreement and questioned whether the automaker could keep the plant running if CATL’s technical support were cut off.
The full agreement has not been made public, leaving unanswered questions about termination rights, technical support, software and Ford’s ability to operate independently of CATL.
Duffy also took aim at Ford’s planned manufacturing venture with Geely in Valencia, Spain.
Under the announced deal, Ford would own 66% and Geely 34%, with the companies planning to manufacture Ford and Geely vehicles at the Spanish plant.
The administration has argued that the arrangement would help a Chinese competitor expand its foothold in Western auto markets. Ford has presented the venture as a way to share costs and make better use of its Valencia operations.
A third flashpoint involves BYD.
Ford and the Chinese automaker have discussed a potential deal for batteries for Ford hybrid vehicles. No completed agreement has been disclosed, however, and details including potential volumes, pricing and manufacturing locations remain unspecified.
Duffy has also criticized Ford for continuing to manufacture the Lincoln Nautilus in China while waiting until 2030 to increase US Lincoln production and phase out China imports for the American market.
Ford called that criticism “misguided,” saying it has been working with administration officials on bringing production back to the US and pointing to Commerce Secretary Howard Lutnick’s praise for the reshoring decision.
The automaker saved some of its harshest language for Duffy himself, calling his letter a “wrongheaded attempt to capture headlines” and pointing out that the White House had touted the same Michigan battery investment just days earlier.
On Aug. 31, the White House highlighted Ford’s roughly $3 billion investment in the Marshall battery plant and its approximately 1,700 jobs as part of a resurgence in Michigan manufacturing.
Ford also directly denied Duffy’s allegation about Farley advocating a framework to bring Chinese automakers into US manufacturing.
“Ford has not proposed a joint-venture framework as described in the letter,” the company said.
The Post has sought comment from Ford and Duffy.
