US Congress requests documents related to Ford’s battery partnership with CATL

To the chagrin of the large American manufacturers, they do not win, and in addition to the historic strike that the unions are carrying out, there are now added problems with agreements such as those signed by Ford with the Chinese company CATL to build a large battery factory in Michigan.

According to Reuters, different Republican congressmen have sent a letter to the president of Ford with a deadline for sending the required documentation on its CATL association, and on the American manufacturer’s plan to build a battery factory that will mobilize 3.5 billion Dollars.

Concerns are that this factory, which will use Chinese technology, will allow CATL to facilitate the flow of US tax subsidies to China, and also leave Ford dependent on the Asian giant’s technology.

On Monday, Ford confirmed a freeze on construction work at the Michigan battery plant, citing concerns about its ability to operate it competitively as it continues to negotiate with unions over wages and conditions for workers at its current factories. cars.

Lawmakers require documents that include the licensing agreement between Ford and CATL, communications between Ford and the Biden Administration, which reference the licensing agreement and the tax credits they will be able to access, as well as records that would indicate knowledge of Ford on CATL’s ” apparent attempt to protect its connection to companies based in the controversial Xinjiang region .”

A region under the point of view of the UN, for the alleged systematic violations of human rights against the Uyghur minority.

Ford said the company had responded to multiple letters from Congress and “thoroughly responded to questions and shared detailed information about Ford’s work to strengthen domestic battery manufacturing,” but did not say whether the company would comply with the request. document.

Ford Mustang Mach E

An issue that calls into question whether the electric cars that Ford will manufacture in the United States will be able to access the $7,500 in public aid.

Aid is conditional on the vehicles not using any battery component manufactured or assembled by a foreign entity, which, if it fails to attract, would mean a catastrophe for the brand that would see its models lose even more competitiveness compared to its rivals.

Another consequence of this unforeseen event could be the scare away of CATL, which would look for another location for its installation, even considering taking it to Mexico. A market that enjoys the free trade agreement would also allow vehicles manufactured with these batteries to access aid.

Elenor Kling

A tech lover and generally a car enthusiast who likes to do a lot of research and share knowledge.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button