The Michigan-China Economic and Security Review Group announced it shared letter from the Select Committee on the CCP urging Ford Motor Company to provide full licensing agreements with Chinese firms CATL and BYD, which the Department of Defense has designated as Chinese military companies, and warned the company could face a testimony summons if responses are incomplete.
According to the Heritage Foundation, Michigan's automotive industry is at risk due to Chinese investments in battery production, including projects like the Ford-CATL facility in Marshall. Local governments have offered incentives such as tax breaks exceeding $1.7 billion, but some communities, like Green Charter Township, have opposed these initiatives and recalled officials who supported them. The foundation indicated that these investments might increase vulnerabilities to supply chain disruptions controlled by foreign entities.
The Center for Strategic and International Studies (CSIS) reported that the U.S. imports over 80% of its battery materials from China, creating dependencies affecting electric vehicle production and national defense. Chinese companies control about 70% of global lithium refining and 60% of cobalt processing, which gives them potential leverage over U.S. supply chains. Efforts to diversify through domestic mining and international alliances could reduce reliance but would require significant policy support over several years. CSIS emphasized that addressing these imbalances is critical for economic and national security.
The Michigan-China Economic and Security Review Group is a non-partisan organization focused on examining the economic and security implications of ties between Michigan and China. It provides analysis on investments, trade, and policy issues to inform stakeholders about potential risks to local industries and engages with policymakers to advocate for measures protecting U.S. interests from foreign dependencies.
