US officials have expressed concerns regarding Ford Motor Company's partnerships with Chinese firms CATL, Geely, and BYD, citing potential national security risks. The United States Department of Transportation sent a letter to Ford CEO Jim Farley, highlighting issues related to the company's collaboration with CATL at its Marshall, Michigan, plant, which produces lithium-iron-phosphate (LFP) battery cells. Transportation Secretary Sean Duffy stated that the reliance on imported Chinese technical expertise challenges American national security and supply-chain independence policies.
Duffy also raised concerns about Ford's joint venture with Geely in Spain, suggesting it could aid strategic adversaries in gaining access to Western markets. Additionally, the Department of Transportation questioned Ford's discussions with BYD regarding hybrid vehicle parts, indicating that this could further integrate subsidized foreign technology into Ford's supply chains.
Ford had announced plans to relocate Lincoln Nautilus production from China to the US by 2030, but Duffy criticized this move as insufficient, arguing it creates a prolonged dependency on Chinese manufacturing. He stated, "When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require."
In response, Ford issued a statement refuting the claims made by the Trump administration, asserting its commitment to American manufacturing and emphasizing its partnerships with American workers. Ford described its agreement with CATL as a limited technology-licensing and services arrangement, not a joint venture. The company also stated that the Marshall battery factory does not pose a threat to the US automobile industry, noting that it owns and operates the plant, which has created 1,700 new American jobs.
Following the release of the letter, Ford's stock declined by 4.2 percent. The company has not yet responded to requests for further comment.