US Transportation Secretary Sean Duffy has formally requested that Ford Motor Company terminate its partnerships with Chinese firms CATL, Geely, and BYD. The demand cites national security concerns regarding the automaker's reliance on Chinese technology and manufacturing for its vehicles.
The pressure centers on the BlueOval Battery Park Michigan facility, where Ford produces lithium-iron phosphate batteries using a licensing agreement with CATL. CATL is currently included on a Pentagon list of companies allegedly linked to the Chinese military, a designation the battery manufacturer contests.
Ford has rejected the demand, characterizing the letter as misguided. The company maintains that it owns and operates the Michigan plant, which employs American workers. Ford argues that this facility represents a significant step toward establishing a domestic supply chain for electric vehicles.
The conflict also extends to Ford's international operations, specifically a joint venture with Geely in Valencia, Spain. This plant is scheduled to begin producing low- and zero-emission vehicles in 2027. Secretary Duffy has criticized the timeline for these projects, including the shift of Lincoln production to the US by 2030, as insufficient.
The administration appears divided on the issue, as Commerce Secretary Howard Lutnick previously commended Ford for its plan to relocate Lincoln production to the US. Meanwhile, a major automotive lobbying group is urging Congress to implement a total ban on Chinese connected vehicles.
