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Two congressional committees are investigating Ford’s licensing deal with Chinese battery maker CATL. The probe focuses on Ford’s plans to use CATL’s battery cell technology at a new battery cell plant.
In a public letter addressed to Ford CEO Jim Farley, House Republicans Mike Gallagher and Jason Smith announced that two congressional committees are investigating the automaker’s licensing deal with Chinese battery maker CATL. The probe centers on Ford’s efforts to put CATL’s battery cell technology to use at an upcoming, $3.5 billion battery cell plant.
The investigation comes as concerns grow over the national security implications of relying on Chinese companies for critical technologies. CATL is one of the world’s largest producers of electric vehicle batteries and has partnerships with several major automakers, including BMW and Volkswagen.
The letter from the House Republicans raises questions about the potential transfer of sensitive technology to China and the impact on American jobs. It also highlights the need for transparency and accountability in such licensing deals.
Ford’s licensing deal with CATL was announced in 2020 and involves the use of CATL’s lithium-ion battery cell technology in Ford’s electric vehicles. The deal includes the construction of a new battery cell plant in the United States, which is expected to create thousands of jobs.
The congressional investigation will examine the terms of the licensing deal, including any potential technology transfer and the impact on American jobs. The House Republicans have requested documents and information from Ford related to the deal, as well as a briefing from company executives.
Ford has stated that it is committed to transparency and will cooperate with the congressional investigation. The company has emphasized the importance of domestic battery production and the need to secure a stable supply chain for electric vehicle batteries.
The investigation into Ford’s licensing deal with CATL reflects broader concerns about the reliance on Chinese companies for critical technologies. The United States and other countries have been working to reduce dependence on China for key components, particularly in industries like electric vehicles and telecommunications.
Top things to Know:
– Two congressional committees are investigating Ford’s licensing deal with Chinese battery maker CATL.
– The probe focuses on Ford’s plans to use CATL’s battery cell technology at a new battery cell plant.
– Concerns over national security implications and the transfer of sensitive technology to China are driving the investigation.
– The House Republicans have requested documents and information from Ford, as well as a briefing from company executives.
– Ford has emphasized the importance of domestic battery production and securing a stable supply chain for electric vehicle batteries.
Original article: https://techcrunch.com/2023/07/21/congress-probes-ford-battery-deal-china-catl/
