Rep. Mike Gallagher, R-Wisc., chair of the Select Committee on the Chinese Communist Party (CCP), co-authored a letter sent to Ford Motor Co. CEO Jim Farley expressing concerns over the company's possible ties to the CCP. Rep. Jason Smith, Chair of the House Committee on Ways and Means, co-signed the letter.
The letter raises concerns about Ford's partnership with battery company Contemporary Amperex Technology, Co. Limited (CATL), which was announced in February. In the letter, Gallagher and Smith "reveal new information about the licensing agreement, CATL’s ties to forced labor, and Ford’s future reliance on Chinese technology, minerals and employees," according to a July 21 news release from the CCP select committee.
"Additionally, public financial disclosures and PRC media reporting suggest that shortly following the announcement of the partnership between Ford and CATL, CATL took steps to maintain effective control while appearing to divest its ownership stake in companies based in the Xinjiang Uyghur Autonomous Region (Xinjiang) that allegedly are connected to forced labor practices," the representatives wrote in the letter, according to the release. "This raises concerns about the troubling connection between CATL, the Chinese Communist Party (CCP), and forced labor in Xinjiang. Finally, there are reasons to question whether the structure of Ford’s deal will in fact contribute to the promised advancements in domestic battery technology."
In the letter, Gallagher and Smith challenge Ford's claims the deal will create thousands of jobs in the U.S., supports Ford's human-rights and sustainability commitments and would result in advancements in battery technology for the U.S., the release reports. However, the representatives write in the letter, recently revealed information casts doubt on those claims.
"Specifically, information regarding the proposed partnership agreement between Ford and CATL suggests that a significant portion of these well-paying jobs will be given to citizens of the People’s Republic of China (PRC) — not Americans," the letter said, according to the release.
The partnership between Ford and CATL has also raised concerns regarding CCP involvement and potential implications related to forced labor and Chinese technology, the release reported. The lawmakers are requesting specific documents in response to those concerns, including a copy of the licensing agreement, all documents and communications between Ford and CATL about the licensing agreement and all documents and communications between Ford and the Biden administration about the Ford/CATL licensing agreement.
"CATL’s ongoing relationship with a lithium mining company implicated in forced labor calls into question Ford’s commitment to responsible supply chains," the Congress members write in the letter, the release reported. "The timeline of a divestment made by CATL and CATL’s deal with Ford, in combination with the fact that entities closely connected with CATL appear to have maintained ownership and control post-divestment, raises serious questions about whether CATL is attempting to obscure links to forced labor."
Rep. Austin Scott, R-Ga., introduced amendments to the National Defense Authorization Act that sought to prevent Department of Defense funds from being used to purchase battery technology produced by CATL. The final amendment expanded that prohibition to other firms associated with the CCP, including BYD Company, Limited; Envision Energy, Limited; EVE Energy Company, Limited; Gotion High tech Company, Limited; and Hithium Energy Storage Technology Company, Limited.
