U.S. Representatives Jason Smith (MO-08) and Mike Gallagher (WI-08) recently expressed concerns about a new partnership between Ford and a China-linked battery company. Their remarks are part of a joint letter sent to Ford's CEO on July 20.
"We write jointly today to seek information about the partnership agreement, Ford’s knowledge of CATL’s apparent attempt to shield its connection to Xinjiang-based companies, and Ford’s commitment to advance U.S. battery production," the representatives wrote in their letter, according to a July 21 press release from The Select Committee on the CCP.
According to the press release, Gallagher and Smith wrote a letter to Jim Farley, the CEO of Ford expressing their concern about a new partnership between the American car company and a China-affiliated battery company called “Contemporary Amperex Technology, Co. Limited (CATL).” Specifically, the release states that the letter covered the areas of potential links to forced labor and Ford’s potential reliance on China.
In their letter, the two representatives note that Ford’s claim that the partnership will create 2,500 news jobs in the U.S is not entirely accurate, as they claim to have information that many of those jobs will actually be occupied by PRC personnel. Moreover, the letter asserts that although Ford claimed that their own employees would run operations, PRC employees are set to work at the plant until 2038.
The letter also suggests that Ford might be violating certain U.S laws regarding connection to Forced Labor supply chains. This accusation comes from a potential link between CATL and forced labor, which, the representatives point out, seems to be evidenced by a former “senior manager” investing in a lithium company that is reportedly tied to “state-sponsored labor transfer programs” less than two days after CATL “quietly divested” from the same company. Given this sequence of events, the representatives express their concern that Ford’s partnership with this company could violate laws like the “Uyghur Forced Labor Prevention Act”.
Additionally, Smith and Gallagher also express their concern in the letter that this partnership could increase the dependency on China for critical minerals, and urges CEO Farley to consider an investment in domestic alternatives. They claim that the supply chains of certain mineral resources from China could be unreliable, and cite recent battery production issues in Europe stemming from PRC restrictions on exports.
