Ford faces GOP and administration scrutiny over Chinese partnerships

U.S. Transportation Secretary Sean Duffy has written to Ford CEO Jim Farley expressing "profound concern" about the automaker's dependence on Chinese battery maker CATL, a joint venture with Geely in Spain and talks with BYD for hybrid-vehicle batteries. Duffy alleges that Ford is seeking a framework that could allow Chinese manufacturers to establish U.S. production through American-controlled joint ventures, a claim the company denies.

The criticism was amplified on Wednesday when Republican Sen. Rick Scott praised Duffy for highlighting what he called "risky ties" to companies linked to the Chinese Communist Party. The House Select Committee on China also posted Ford statements alongside reports of its Chinese business relationships, suggesting a discrepancy between the company's claims and its actions.

Ford's BlueOval Battery Park Michigan in Marshall produces lithium-iron phosphate batteries using technology licensed from CATL, which appears on the Pentagon's Section 1260H list of firms with alleged ties to China’s military. Ford maintains the arrangement is a limited technology-licensing and services agreement, not a joint venture, and that the plant is wholly owned and operated by the company.

The planned Valencia, Spain venture would see Ford hold a 66% stake and Geely 34%, with both firms manufacturing vehicles at the site. Critics argue the deal could expand a Chinese competitor’s presence in Western markets, while Ford says it is a cost-sharing measure.

Discussions with BYD over battery supply for hybrid models have not resulted in a disclosed agreement, and details such as volume and pricing remain unclear. Duffy also noted Ford's continued production of the Lincoln Nautilus in China, despite a pledge to increase U.S. output by 2030.

Ford responded that the administration's concerns are "misguided," pointing to recent White House recognition of its $3 billion investment in the Michigan battery plant and the creation of about 1,700 jobs. The company also rejected the allegation that it proposed a joint-venture framework for Chinese automakers in the United States.