GOP Lawmakers Urge Biden Administration To Probe Into Chinese Firms Tied To Ford's Battery Plant - Ford M

In a recent development, two prominent U.S. House committees have called upon the Biden administration to investigate four Chinese companies allegedly linked to Ford Motor’s (NYSE:F) forthcoming Michigan battery plant. The lawmakers have raised concerns about these companies’ associations with the Chinese military, the Chinese Communist Party, the North Korean government, and purported human rights violations in China’s Xinjiang region.

What Happened: The letter, as Reuters reported on Monday, was sent by Rep. Mike Gallagher (R-Wis.), who chairs the select committee on China, and Rep. Cathy McMorris Rodgers (R-Wash.), who chairs the Energy and Commerce Committee. The letter, which was not previously disclosed, urges the Commerce Department to investigate the four Chinese companies and consider imposing export restrictions on them.

The letter does not disclose the names of the Chinese companies, as the committees were not permitted to make their identities public. The letter also highlights the use of technology supplied by Chinese battery maker CATL in the Ford plant, a move that has drawn criticism from U.S. lawmakers.

A Ford spokesperson reached out to Benzinga to express the company’s statement on the matter, adding that the upcoming plant will create more than 1,700 jobs.

“We’ve been helping the committees understand this Ford wholly owned and operated project. Ford has always been and remains fully committed to following all government regulations across our business. Beyond legal requirements, Ford suppliers are required to meet our high standards and codes of conducts, including those to protect human rights, and are obligated to extend those requirements to suppliers with whom they might work. We welcome any information from any source concerning the integrity of our supply chains and partners,” the statement read.

Why It Matters: The Michigan battery plant was announced in February in partnership with CATL when the company decided to invest $3.5 billion to build the U.S.’s first lithium iron phosphate battery plant, a move meant to solidify its position in the electric vehicle market.

The plant has been under fire for its use of technology supplied by Chinese battery maker CATL. In July, the alliance between Ford and CATL drew the attention of two U.S. House of Representatives committees, who expressed concerns about the potential influence of the Chinese Communist Party over the U.S. automaker and its implications for U.S. taxpayers.

This investigation comes amid a series of events that have impacted Ford’s operations. In September, a UAW strike led to temporary layoffs at Ford’s Michigan Assembly Plant. The strike also affected General Motors and Stellantis NV. However, Ford’s electric vehicle ambitions remain strong.

Despite these challenges, Ford continues to plan for EV growth in 2024, with the creation of nearly 900 new jobs and the addition of a third crew at its Michigan Assembly Plant.

Photo via Wikimedia Commons

Editor's note: This story has been updated with a comment from Ford

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