The White House Office of Trade and Manufacturing Policy said on Feb. 16 that White House trade adviser Peter Navarro raised concerns about Ford Motor Company's reported discussions with BYD to supply hybrid vehicle batteries, saying the move would strengthen a Chinese competitor and increase supply chain vulnerability.
Navarro's comments come as Ford is reportedly in talks with BYD to supply batteries for hybrid vehicles at overseas factories. He said such a partnership could "prop up a Chinese competitor's supply chain," according to The Detroit News. Ford already licenses battery technology from CATL, which the U.S. Department of Defense has designated as a Chinese military company under Section 1260H of the National Defense Authorization Act.
Ford's BlueOval Battery Park Michigan in Marshall currently relies on lithium iron phosphate technology licensed from CATL, a designated Chinese military company. A new partnership with BYD would give Ford ties to two Chinese battery manufacturers, funneling additional American automaker revenue into supply chains controlled by the People's Republic of China (PRC), according to Bridge Michigan.
A report by Human Rights Watch said BYD did not respond to questions about its aluminum supply chain in relation to concerns about forced labor in China’s Xinjiang region. The report noted that Xinjiang is a significant source of global aluminum production.
Peter Navarro serves as White House trade adviser in the Trump administration and previously served as Director of the Office of Trade and Manufacturing Policy. He is also the author of Death by China, detailing Chinese economic strategy. BYD is the world's largest electric vehicle manufacturer by sales volume and is headquartered in Shenzhen, according to corporate filings cited by The Detroit News.
