Cape News

In response to concerns surrounding Ford Motor Company and its battery company, Contemporary Amperex Technology, Co. Limited (CATL), lawmakers wrote a joint letter to Ford Motor Company CEO Jim Farley about the battery company's ties to the Chinese Communist Party. According to a release by the Select Committee on the CCP on July 21, the letter written by Wisconsin Rep. Mike Gallagher, Chairman of the Select Committee on the Chinese Communist Party (CCP), and Missouri Rep. Jason Smith, Chairman of the House Committee on Ways and Means, raises concerns about how jobs could potentially be going to citizens of the People's Republic of China over U.S. citizens.

"Ford has argued that the deal will create thousands of American jobs, further Ford’s “commitments to sustainability and human rights,” and lead to American battery technology advancements," the letter states, according to a press release. "But newly discovered information raises serious questions about each claim. Specifically, information regarding the proposed partnership agreement between Ford and CATL suggests that a significant portion of these well-paying jobs will be given to citizens of the People’s Republic of China (PRC)—not Americans."

The letter continued, saying "Additionally, public financial disclosures and PRC media reporting suggest that shortly following the announcement of the partnership between Ford and CATL, CATL took steps to maintain effective control while appearing to divest its ownership stake in companies based in the Xinjiang Uyghur Autonomous Region (Xinjiang) that allegedly are connected to forced labor practices. This raises concerns about the troubling connection between CATL, the Chinese Communist Party (CCP), and forced labor in Xinjiang. Finally, there are reasons to question whether the structure of Ford’s deal will in fact contribute to the promised advancements in domestic battery technology."

An earlier letter was sent to Ford Motor Company about the issue, but the lawmakers did not receive a proper response and were seeking more information, according to the release.

"We write jointly today to seek information about the partnership agreement, Ford’s knowledge of CATL’s apparent attempt to shield its connection to Xinjiang-based companies, and Ford’s commitment to advance U.S. battery production," the letter read.

The partnership between Ford and CATL has raised concerns regarding CCP involvement and potential implications related to forced labor and Chinese technology. In response to these concerns, the lawmakers are requesting specific documents, including "a copy of the licensing agreement between Ford and CATL", "all documents and communications between Ford and CATL referring or relating to the licensing agreement", as well as "all documents and communications between Ford and the Biden Administration referring or relating to the Ford/CATL licensing agreement", according to a press release.

"CATL’s ongoing relationship with a lithium mining company implicated in forced labor calls into question Ford’s commitment to responsible supply chains," states the letter, according to a press release. "The timeline of a divestment made by CATL and CATL’s deal with Ford, in combination with the fact that entities closely connected with CATL appear to have maintained ownership and control post-divestment, raises serious questions about whether CATL is attempting to obscure links to forced labor."

Georgia Rep. Austin Scott introduced amendments to the National Defense Authorization Act (NDAA) last week that seek to prevent funds from being allocated towards battery technology linked to the Chinese Communist Party (CCP), according to his website. Originally aimed at Contemporary Amperex Technology Company (CATL), the amendment now includes other CCP-affiliated companies like Gotion High tech Company, Limited, EVE Energy Company, Limited, BYD Company, among others.