Ford is under intense pressure from the Trump administration and congressional Republicans who contend the automaker is becoming overly dependent on Chinese companies for battery technology, manufacturing, and supply deals. Transportation Secretary Sean Duffy has specifically targeted Ford's use of technology licensed from Chinese battery giant CATL for its Michigan battery factory and its planned joint venture with Chinese automaker Geely in Spain.
Duffy also accused Ford CEO Jim Farley of proposing a framework that would enable Chinese automakers to establish U.S. manufacturing operations through American-controlled joint ventures, an assertion Ford has strongly denied.
The criticism was amplified by Senator Rick Scott (R-Fla.), who commended Duffy for raising concerns about Ford's business relationships with companies linked to the Chinese Communist Party. The House Select Committee on China also raised questions about Ford's operations, juxtaposing company statements with reports of its business dealings in China.
Duffy detailed his concerns in a letter to Farley, expressing "profound concern" over Ford's manufacturing strategies, supply chain dependencies, and reliance on Chinese technology. At the core of the dispute is Ford's BlueOval Battery Park Michigan in Marshall, where lithium-iron phosphate batteries are produced using technology licensed from CATL. CATL has previously been identified by the Pentagon as a company with alleged ties to China's military, adding to existing scrutiny in Washington.
Ford has countered that its arrangement with CATL is a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation. The company stated it owns the plant, controls its operations, and employs the workforce. However, the administration's concern persists that Ford's dependence on Chinese intellectual property and technical expertise remains despite manufacturing batteries domestically.
Congressional investigators have previously sought Ford's complete licensing agreement with CATL, questioning the automaker's ability to maintain operations should CATL cease technical support. The full agreement's details, including termination rights and technical support provisions, have not been publicly disclosed.
Further scrutiny has been placed on Ford's planned manufacturing venture with Geely in Valencia, Spain. Under this agreement, Ford would hold a 66% stake, and Geely 34%, with the intention of producing both Ford and Geely vehicles at the Spanish facility. The administration views this as potentially aiding a Chinese competitor's expansion into Western markets, while Ford frames it as a cost-sharing measure and a way to optimize its Valencia operations.
Additionally, discussions between Ford and Chinese automaker BYD regarding potential battery supplies for Ford hybrid vehicles have become another point of concern. Details of any completed agreement, including production volumes and locations, remain unspecified.
Duffy also criticized Ford for continuing to manufacture the Lincoln Nautilus in China while delaying increased U.S. Lincoln production and the phasing out of China imports until 2030. Ford described this criticism as "misguided," noting its work with administration officials on reshoring production and citing Commerce Secretary Howard Lutnick's positive remarks on the reshoring decision.
Ford directly refuted Secretary Duffy's claim that CEO Jim Farley had advocated for a framework to bring Chinese automakers into U.S. manufacturing, stating that "Ford has not proposed a joint-venture framework as described in the letter."
Earlier, the White House had highlighted Ford's approximately $3 billion investment in the Marshall battery plant and its creation of about 1,700 jobs as evidence of a resurgence in Michigan manufacturing.