The Michigan-China Economic and Security Review Group announced that Ford’s lithium-ion battery plant deal with Contemporary Amperex Technology Co., Limited (CATL) in Marshall, Michigan, included $1.8 billion in taxpayer incentives, no federal national security review, and limited transparency, raising concerns over compliance with guidance for subnational agreements with Chinese companies.
According to the Michigan-China Economic and Security Review Group, Ford CEO Jim Farley collaborated with Michigan Governor Gretchen Whitmer, Michigan Economic Development Corporation (MEDC) CEO Quentin Messer, and CATL to establish the battery plant. The group claims that the project involved a $178 million no-bid contract and lacked essential due diligence measures such as national security assessments, geopolitical evaluations, market impact analysis, consumer product interest reviews, and any assessment by the Committee on Foreign Investment in the United States (CFIUS).
Reuters reported that Ford's $3 billion battery plant is set to produce lithium iron phosphate batteries using CATL technology and will employ 1,700 workers starting in 2026. While state incentives were provided for the project, it has been scaled back due to slowing demand and political scrutiny. Concerns persist over the use of taxpayer funds for a deal involving a Chinese company.
The International Energy Agency (IEA) highlighted China's dominance in lithium-ion battery supply chains, controlling 80 percent or more of key areas including near-monopolies in precursor materials. Developing production outside China faces challenges from export controls on critical minerals, impacting global energy storage and electric vehicle markets.
The Michigan-China Economic and Security Review Group was established in 2023 as a citizen-led initiative directed by Joseph Cella, former U.S. Ambassador. Its mission is to monitor threats from subnational incursions by the People's Republic of China and the Chinese Communist Party in Michigan.
