Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official Website
Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party has sent a letter to Ford Motor Company CEO Jim Farley regarding Ford's plans to use technology from Contemporary Amperex Technology Co., Limited (CATL), a company designated by the Pentagon as linked to the Chinese military, in its data center battery production.
In his letter, Moolenaar raised concerns about Ford's intention to enter the energy storage market with CATL and questioned whether changes have been made to Ford’s licensing agreement with CATL since new restrictions on federal clean energy tax credits were enacted. The new rules limit eligibility for tax credits related to licensing arrangements with certain foreign entities.
"Public statements from Ford indicate that the company plans to repurpose its existing U.S. battery manufacturing facilities to produce lithium iron phosphate (LFP) cells and grid-scale energy storage systems. This effort would leverage technical know-how licensed from Contemporary Amperex Technology Co., Limited (CATL), a Department of War-designated Chinese military company. Ford’s apparent changes follow enactment of the One Big Beautiful Bill Act, which placed new restrictions on eligibility for clean energy tax credits—including limits related to licensing arrangements with prohibited foreign entities," writes Moolenaar in the letter.
"In particular, the statute disqualifies tax credits for licensing agreements that are modified after the bill’s enactment, or that involve ongoing technical dependence or revenue-sharing with a foreign-influenced entity. Ford’s revised business plan raises important questions about whether the original licensing terms have been updated, expanded, or otherwise altered to accommodate the company’s new focus on energy storage systems and data center markets," he continues.
Moolenaar also requested clarification about reports suggesting a possible partnership between Ford and BYD, another Chinese automaker. He previously cautioned Ford against such partnerships earlier this year.
"If reports that Ford is in discussions to potentially partner with a second Chinese battery company were to come true, it would diminish Ford’s status as an iconic American company. China has already shown in recent months that it will weaponize the auto supply chain. This is a serious vulnerability and it would only get worse if Ford enters into a new partnership with BYD. Ford should work with our nation’s allies, not our adversaries,” said Moolenaar on January 15.
The House Select Committee on the Chinese Communist Party operates as a bipartisan committee within the U.S. House of Representatives and examines economic and security challenges posed by competition with China while developing policy recommendations and legislative proposals aimed at enhancing U.S. competitiveness. More information can be found at its official website: https://chinaselectcommittee.house.gov/.
