The Michigan-China Economic and Security Review Group has raised concerns about Ford's planned battery plant in collaboration with the Chinese-based Contemporary Amperex Technology Co., Limited (CATL). The group claims that the project could pose risks to U.S. security, local workers, and governance due to CATL's alleged ties to the Chinese military. This statement was issued on X.
According to the Select Committee on the Chinese Communist Party (CCP), Ford intends to establish a multibillion-dollar lithium iron phosphate (LFP) electric vehicle (EV) battery plant in Marshall, Michigan. The technology for this plant would be licensed from CATL, following Virginia Governor Glenn Youngkin's rejection of a similar proposal as a "Trojan horse" for China. The Michigan-China Economic and Security Review Group has highlighted several risks associated with this deal, including the potential hiring of Americans by CCP-linked CATL, the presence of Chinese nationals subject to People's Republic of China (PRC) security laws, and secrecy agreements that may limit transparency. National security officials have reportedly issued warnings that were allegedly ignored. Republican figures such as Senator Marco Rubio have also expressed concerns about forced labor and abuses against Uyghurs.
Reuters reported that Ford’s Marshall project was initially described as a $3–3.5 billion investment promising 2,500 jobs and over $1 billion in Michigan incentives. However, these plans were later scaled back to approximately $3 billion, 1,700 jobs, and $409 million in subsidies after production plans were reduced. The Michigan-China Economic and Security Review Group argues that these taxpayer funds effectively support a PRC-headquartered licensor now flagged by the Pentagon as a Chinese military company. They warn that Department of Energy (DOE) and Treasury "foreign entity of concern" rules could leave Michigan communities exposed while increasing dependence on a CCP-linked battery supplier.
In January 2025, the U.S. Department of Defense added CATL to its updated list of "Chinese military companies," alongside firms such as Tencent. This designation signals concern that CATL supports China’s military or security apparatus even without immediate sanctions. Concurrently, DOE’s "foreign entity of concern" guidance and related Treasury and Internal Revenue Service (IRS) EV tax rules aim to curb reliance on battery supply chains tied to governments like the PRC. Republicans on the House China Committee and Rubio argue that CATL’s military designation and alleged forced-labor links conflict with U.S. efforts to decouple from Beijing in critical sectors.
The Michigan-China Economic and Security Review Group is based in Michigan and was founded by former U.S. ambassadors Joseph Cella and Pete Hoekstra. It monitors how economic activities linked to the Chinese Communist Party affect the state’s security, economy, and communities. The group focuses on sub-national projects such as the CATL and Gotion battery plants and often collaborates with Republican lawmakers concerned about CCP industrial influence. Their mission includes alerting citizens, labor groups, and officials about PRC-connected risks; advocating for tools like CFIUS (Committee on Foreign Investment in the United States) and FEOC (Foreign Entity of Concern) rules; supporting military-company designations; and promoting reshoring efforts to reduce U.S. dependence on Beijing for batteries and critical minerals.
