Ford Motor Company is facing a congressional investigation into its licensing agreement with Chinese battery manufacturer CATL. In a public letter addressed to Ford CEO Jim Farley, House Republicans Mike Gallagher and Jason Smith revealed that two congressional committees are probing the automaker’s deal with CATL, particularly focusing on the utilization of CATL’s battery cell technology in a forthcoming $3.5 billion battery cell plant in Michigan.
The House Ways and Means Committee and the Select Committee on China have requested Ford to provide details about its agreement with CATL by August 10. Specifically, they seek communication records between Ford and the Biden administration related to the CATL deal. Additionally, the representatives are demanding an explanation from Ford on how it plans to ensure that imports from CATL for producing LFP batteries in Michigan do not involve forced labor or inputs from Xinjiang, an area associated with human rights concerns.
When contacted by TechCrunch, a Ford spokesperson declined to comment on the specific details of the congressional letter. However, the spokesperson reiterated Ford’s commitment to investing $3.5 billion in the battery plant, which will be owned and operated by the company in the United States. Ford aims to avoid building a battery plant in other countries or solely importing LFP batteries from China, a strategy employed by some of its competitors.
This congressional investigation comes in the wake of House Republicans announcing a separate probe into U.S. venture firms’ investments in China, indicating increased scrutiny of business dealings between American companies and Chinese entities. As the investigation unfolds, it remains to be seen how Ford will address the concerns raised by the congressional committees and navigate the implications of its deal with CATL.