Chinese military company CATL partners with Ford in billion-dollar EV factory

In the United States, the Department of Defense recently updated its list of Chinese military companies, designating CATL, a major electric vehicle battery manufacturer. This designation corresponds with Ford Motor Company's partnership with CATL on a billion-dollar electric vehicle project based in Michigan. Alarmingly, analysts and lawmakers have raised concerns about CATL’s connections with the Chinese Communist Party, arguing it poses national security threats as it participates in crucial supply chains for green energy. The project was supported by nearly $2 billion in subsidies and tax breaks from the Michigan government, led by Governor Gretchen Whitmer. This financial support reflects a broader trend of state-level commitments to renewable energy yet raises questions about due diligence considering CATL’s connections to the Chinese military and government. Legislators have pointed out the risks associated with engaging in business with a company that aligns with China’s military ambitions. As the partnership between Ford and CATL was announced, consumer demand for electric vehicles started to wane, leading Ford to downsize the project. The implications of working closely with a company now acknowledged to have ties to military advancements present challenges for Ford, especially in maintaining its reputation and safeguarding American interests. This scenario illustrates the delicate balance between pursuing green technology initiatives and ensuring national security. The unfolding situation with CATL and Ford underscores the complexities embedded in the global supply chain for green technology and how intertwined these issues are with international power dynamics. Strategic maneuvers by the Chinese government over the past decade to bolster companies like CATL complicate the landscape in which American corporations operate. Furthermore, this development serves as a warning to other states engaged in dealings with firms tied to foreign governments that could potentially threaten U.S. national security.