In a sternly worded letter to CEO Jim Farley of the Ford Motor Company, two of the House’s leading China Hawks lashed into the company’s plans to license Chinese technology for electric vehicle battery production, calling for access to Ford’s business records and correspondence related to the deal.
Chairman of the House Committee on Ways and Means Jason Smith (R-MO) and Rep. Mike Gallagher (R-WI) of the Select Committee on the Chinese Communist Party asked to review all corporate and external communications relating to the licensing agreement, as well as all communications on the topic with the White House.
Among the objections the lawmakers cite is the intention of Ford to engage. CATL employees from the PRC to set up and maintain the licensed technology.
They also note that CATL maintains extensive links to Xinjiang Lithium, a documented exploiter of Forced Labor. Ford’s and CATL’s decision to trade with Xinjian Lithium and other materials suppliers raise questions of compliance with the Uyghur Forced Labor Protection Act, as well as the project’s reliance on Chinese mineral supplies.
“If Ford instead avoided iron sulfate from China and supported the development of homegrown process technologies and local sourcing strategies, it could play a central role in further developing the supply chain for North American sourced cathode active materials,” the lawmakers wrote.
“By entering into a licensing agreement instead of a traditional joint venture with PRC-based CATL, Ford can likely exploit the Section 30D clean vehicle credit aimed at reducing reliance on foreign technology and labor in the design and development of American electric vehicles.
“Such behavior raises serious questions as Conas [sic] Congress conducts oversight of the implementation of this and other federal tax incentives.
See below, or click HERE to read the letter.
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