The U.S. Department of Defense announced it has designated Contemporary Amperex Technology Co. Limited (CATL) as a Chinese military company, triggering a federal contract prohibition effective June 30.
The announcement was shared in an official statement from the Department of Defense. The designation means federal agencies will be prohibited from entering into new or renewed contracts with CATL beginning at the end of June.
The move is part of broader U.S. efforts to address national security concerns tied to foreign influence and supply chain dependencies involving certain companies operating in the United States.
The Department of Defense list identifies 76 entities as Chinese military companies operating in the United States, according to the agency. Section 805 of the fiscal year 2024 National Defense Authorization Act prohibits the Pentagon from entering into new or renewed contracts with listed entities.
A broader restriction on indirect procurement of goods and services is scheduled to take effect in June 2027, according to the department.
The designation comes as CATL remains deeply embedded in global battery supply chains, including major U.S. industrial projects.
Ford’s BlueOval Battery Park Michigan in Marshall is scheduled to begin production this summer using lithium iron phosphate (LFP) battery technology licensed from CATL, according to Ford Authority. Ford has invested between $2.5 billion and $3 billion in the facility, while Michigan has provided about $1.7 billion in state incentives. The project is now expected to support roughly 1,700 jobs after being scaled back.
Bloomberg reported that CATL co-chairman Pan Jian made at least two trips to Washington seeking removal of the company from the Section 1260H list, including a March 2025 meeting at the Pentagon.
CATL supplies nearly 40% of electric vehicle batteries worldwide, according to SNE Research. China produces approximately 80% of the world’s batteries, according to figures cited in the Blocking Bad Batteries Act text.
The Department of Defense maintains the Section 1260H list as required under the National Defense Authorization Act for Fiscal Year 2021. The list identifies companies the department has determined are Chinese military companies or entities owned, controlled by, or affiliated with China’s People’s Liberation Army. Placement on the list triggers procurement restrictions.
