Ford announced it will shift the use of Contemporary Amperex Technology Co. Limited’s (CATL) lithium iron phosphate batteries from electric vehicles to large-scale energy storage for the North American power grid, with production at a new Michigan plant planned to start next year. The move comes amid national security concerns over CATL’s ties to Chinese military-linked companies and U.S. efforts to reduce dependence on Chinese battery technology.
According to Auto123, Ford has terminated $18 billion worth of battery agreements with South Korean suppliers, redirecting its focus towards energy storage using CATL technology in Michigan. Local production under license aims to reduce dependence on imported Chinese-made batteries. However, CATL's inclusion on the U.S. Foreign Entity of Concern list due to ties with Chinese military companies raises national security issues, emphasizing the need for domestic alternatives. While Michigan agreed to host the plant after Virginia declined due to China-related risks, there are concerns that long-term reliance on Chinese technology could compromise U.S. supply chain independence.
The Michigan Public Service Commission reports that as of 2024, the state had 28.6 megawatts of distributed energy storage installed, with utilities operating small-scale battery facilities totaling about 6 megawatts and 709 megawatts of utility-scale projects under development. Proposed projects linked to China, such as Gotion’s battery plant in Michigan, have faced opposition from Republican lawmakers over national security concerns and ties to the Chinese Communist Party. Analysts suggest that Michigan should prioritize domestic sourcing for energy storage to minimize reliance on China for critical minerals and technology.
Data from the U.S. Energy Information Administration indicates that U.S. battery storage capacity reached 50 gigawatts in 2024, with an additional 15.2 gigawatts projected by 2025. China controls more than 80% of global battery materials like graphite and cobalt, posing national security risks. Experts warn that U.S. dependence on Chinese imports for critical resources leaves the country vulnerable to supply disruptions and coercion, making it essential to secure domestic mining and refining capabilities.
Ford Motor Company was founded in 1903 in Dearborn, Michigan, and is known for pioneering mass production with the Model T vehicle. It has grown into a global automaker producing vehicles under the Ford and Lincoln brands, employing over 170,000 people worldwide while expanding into electric mobility and related technologies.
