Ford’s Chinese Partner In Michigan Factory Labeled Military-Linked By Pentagon

The Pentagon has added Contemporary Amperex Technology Co., Limited (CATL), a Chinese electric vehicle battery maker, to its list of companies tied to China’s military. This designation has placed Ford Motor Company’s $3.5 billion EV project in Marshall, Michigan, under scrutiny, as the factory is being built in partnership with CATL.

CATL is a key player in the global battery market and has strong links to the Chinese Communist Party (CCP). The company’s founder, Zeng Yuqun, serves on a CCP advisory body focused on advancing strategic technologies. Critics have pointed out that CATL’s dominance in lithium supply chains gives it significant influence over global EV production.

The Michigan factory, announced in 2023, was expected to create 2,500 jobs and increase Ford’s EV production capacity. However, Ford scaled back its plans later that year, citing weaker-than-expected consumer demand for EVs. The Pentagon’s designation of CATL as a military-linked company has further complicated the project’s outlook.

Gov. Gretchen Whitmer (D) approved nearly $2 billion in state subsidies and tax breaks to support the factory, framing it as a major step toward economic growth and clean energy development. Critics argue that the administration failed to thoroughly investigate CATL’s ties to China’s government before committing taxpayer dollars.

Rep. John Moolenaar (R-MI) expressed concern about the partnership, emphasizing the risks of working with entities tied to the CCP. He noted that such collaborations could jeopardize national security and weaken U.S. economic independence in critical sectors.

The factory, intended to produce up to 35 gigawatt-hours of batteries annually, was part of Ford’s strategy to compete with Tesla and other automakers in the rapidly growing EV market. The controversy over CATL’s inclusion on the Pentagon’s blacklist has added new challenges to the project.

 

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