The Michigan-China Economic and Security Review Group announced on X that Ford’s partnership with Contemporary Amperex Technology Co., Limited (CATL) poses national security risks because of the company’s ties to the Chinese Communist Party and concerns over insufficient due diligence.
The group reported that Ford’s partnership with CATL conflicts with guidance in a National Counterintelligence and Security Center memo on subnational engagements with Chinese entities. The memo advises thorough due diligence, transparency in agreements, and vigilance against exploitation to protect U.S. interests, warning of risks such as information collection and economic leverage by the People’s Republic of China.
According to Bridge Michigan, Michigan offered incentives for Ford’s CATL battery plant in Marshall, which is expected to employ 1,700 workers when it opens in 2026. The project has drawn scrutiny over national security because of CATL’s ties to the Chinese Communist Party, prompting calls for greater oversight. The plant’s proximity to U.S. military installations has added to concerns about potential risks.
China controls more than 90% of global graphite processing and over two-thirds of cobalt and lithium processing capacity. The U.S. imports nearly three-quarters of its lithium-ion batteries from China, underscoring dependence in the electric vehicle sector. Analysts say this reliance poses national security and economic risks, highlighting the need for domestic sourcing and supply chain diversification.
The Michigan-China Economic and Security Review Group was founded in 2023 as a citizen-led organization to monitor threats from the People's Republic of China and Chinese Communist Party in Michigan. It is directed by former Ambassador Joseph Cella and co-founded with former Ambassador Pete Hoekstra. The group assesses subnational incursions to protect state security.
