Washington pressures Ford to drop Chinese battery and carmaker links
US Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley expressing concern over Ford's partnerships with CATL, Geely, and BYD, citing national security risks. Duffy specifically criticized Ford's reliance on CATL technology and its plan to keep producing the Lincoln Nautilus in China until 2030. Ford responded, calling the letter a "wrong-headed attempt to capture headlines" and noting its own battery investments.
Duffy's letter specifically targeted Ford's use of licensed CATL battery technology at its Marshall, Michigan facility, noting CATL's placement on a Pentagon list of firms linked to China's military. He also objected to Ford's timeline for relocating Lincoln Nautilus production from China, which extends to 2030.
In response, Ford characterized the letter as a misguided publicity stunt, highlighting its own investments in American battery production. The automaker stressed that it owns and operates the Michigan plant and employs its workforce, while pointing out that other companies continue to import Chinese-made batteries.
This escalating pressure could reshape automotive supply chains, potentially forcing Ford to accelerate its domestic battery production and reconsider its Chinese manufacturing footprint. Such shifts may lead to higher production costs, which could be passed on to consumers through vehicle pricing. Workers in Michigan might see expanded employment opportunities, while those tied to Chinese operations could face uncertainty. Additionally, this friction may further strain US-China trade relations, affecting broader economic stability and the availability of specific models like the Nautilus.