Rep. Mike Gallagher (R-Wisconsin), Chairman of the Select Committee on the Chinese Communist Party, remarks on Ford's decision to maintain their agreement with the CCP-affiliated battery company Contemporary Amperex Technology, Co. Limited (CATL). This decision comes amidst concerns over possible forced labor involvement and challenges facing the electric vehicle industry.
"Reports that Ford is deepening its partnership with CATL, despite its ties to Uyghur forced labor, are extremely disappointing. The American people deserve better from an iconic US company that receives massive taxpayer subsidies. Ford needs to call off this unethical deal for good.", said Mike Gallagher.
In reference to recent developments, After putting the agreement on hold, Ford has officially revived its partnership with CATL. The joint effort is set to begin construction on the Michigan plant, which will be the company's first battery facility and is scheduled to begin operations in 2026. The plant will specialize in manufacturing lithium iron phosphate batteries, primarily used for electric vehicles (EVs). Ford has opted to reduce the scale of the project by more than 40%, a decision influenced by the EV business facing challenges such as dwindling sales, high costs, and substantial financial losses, according to Yahoo News.
Adding another layer of complexity, The collaboration between Ford and CATL had previously raised concerns among lawmakers regarding Chinese Communist Party (CCP) involvement and potential ramifications linked to forced labor and Chinese technology. In response to these concerns, lawmakers, including Gallagher, called for an investigation into the partnership in September. They sought specific documents and details, such as "a copy of the licensing agreement between Ford and CATL," "all documents and communications between Ford and CATL referring or relating to the licensing agreement," as well as "all documents and communications between Ford and the Biden Administration referring or relating to the Ford/CATL licensing agreement," according to a press release from the Select Committee on the CCP.
Further complicating matters, Despite multiple attempts, lawmakers were unsuccessful in obtaining the requested documents from Ford. Previously, the company was given until October 6 to comply, or alternative measures, such as appearing before Congress, would be pursued. The lawmakers expressed concern over Ford's ongoing refusal to provide responses to the issues raised in the April, July, and September letters, stating that it undermines Ford's commitment to "act with transparency, integrity, and honesty", according to a press release from the Select Committee on the CCP.
In their latest communication, "We are pleased to confirm we are moving ahead with the Marshall project, consistent with the Ford+ plan for growth and value creation," said Ford, according to a press release from Ford. "However, we are right-sizing as we balance investment, growth, and profitability. The facility will now create more than 1,700 good-paying American jobs to produce a planned capacity of approximately 20 GWh."
