Pentagon Designates CATL As Military-Linked, Ford’s Michigan EV Deal Draws Scrutiny

Chinese battery giant CATL, a partner in Ford Motor Company’s $3.5 billion Michigan EV factory, has been designated by the Pentagon as a “Chinese military company”. This classification, which highlights CATL’s connections to the Chinese Communist Party (CCP), has raised concerns over the state-backed project.

CATL’s founder, Zeng Yuqun, is closely associated with the CCP through his role on an advisory committee that shapes China’s technological priorities. The company has been instrumental in securing China’s dominance in global lithium supply chains, which are critical for electric vehicle production. The Pentagon’s designation adds further scrutiny to the company’s operations in the United States.

The Michigan facility, announced in early 2023, was supported by Gov. Gretchen Whitmer (D) with nearly $2 billion in taxpayer subsidies and incentives. The project promised 2,500 jobs and a significant boost to the local economy. However, declining consumer demand for EVs prompted Ford to downsize the initiative later that year.

Rep. John Moolenaar (R-MI) voiced concern about the partnership, stating that collaborations with CCP-linked companies could endanger national security. He emphasized the importance of stricter oversight of foreign investments in sensitive industries to protect U.S. interests.

The factory, designed to produce up to 35 gigawatt-hours of batteries annually, was a key part of Ford’s strategy to expand its EV lineup. CATL’s involvement was expected to provide advanced battery technology, but its ties to the CCP have raised alarms among lawmakers and security experts.

Reports from 2021 revealed that Chinese investors linked to the CCP held financial stakes in CATL, amplifying fears of Beijing’s influence. The Pentagon’s action highlights the growing tension between U.S. green energy goals and the risks of foreign involvement in critical sectors.

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