The US Defense Department has added CATL, the world’s largest electric vehicle battery maker, along with Chinese tech giant Tencent Holdings, to a list of companies that work with China’s military, escalating tensions between the two nations. The move affects Ford, which plans to use CATL technology at its Marshall plant in Michigan.
CATL supplies Tesla and says it is “not engaged in any military-related activities.” However, US lawmakers had pushed for the company to be added to the list, citing security concerns. The Pentagon’s move also includes other Chinese companies, such as chip maker Changxin Memory Technologies and drone maker Autel Robotics.
Ford has agreed to cut tax credits and public grants for its battery plant project in Michigan, which will use CATL technology to produce low-cost lithium-iron batteries. Ford plans to begin production at the site in 2026. The designation does not involve immediate bans but can impact companies’ reputations and add pressure on US entities to sanction them.
US Rep. John Moolenaar called the move “encouraged” and said it would prevent US companies from being threatened by Chinese military capabilities. China’s foreign ministry urged the US to lift its sanctions, saying it would safeguard Chinese companies’ legitimate rights and interests. The addition of CATL to the list is part of a growing trend in Washington to restrict Chinese companies deemed security risks.
Source: https://eu.freep.com/story/money/cars/ford/2025/01/07/ford-chinese-ev-batteries-catl-marshall-megasite/77519832007