The Trump administration is asking Ford to distance itself from Chinese companies.
Ford is under pressure in the United States. The U.S. Secretary of Transportation is concerned about the automaker’s growing ties with several Chinese companies, notably CATL and Geely. Ford responds by defending partnerships it believes are essential for its American industry.
The relationship between the United States and China’s automotive industry continues to strain. This time, it is Ford that has become directly targeted by the Trump administration.
In a letter sent on Tuesday to Jim Farley, the CEO of the American automaker, Transportation Secretary Sean Duffy expressed his “profound concern” over the various deals Ford has struck with Chinese companies. He argued that the group’s recent strategic decisions give rise to a troubling image of an iconic American industry brand gradually tying its future to state-backed Chinese enterprises.
Ford deepens ties with Chinese companies
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But it is primarily the relationship between Ford and CATL, the world’s leading battery manufacturer, that has drawn criticism. The American automaker uses technology licensed from the Chinese giant to produce LFP cells at its new BlueOval Battery Park facility in Marshall, Michigan. These batteries have seen remarkable progress in recent years. Being less expensive and known for their durability, they now hold a central role in the electric vehicle industry. A field where Chinese manufacturers, led by CATL, have a significant advantage. Sean Duffy says the U.S. Department of Transportation remains “deeply alarmed” by Ford’s reliance on CATL’s technologies at this plant.
Ford: “We manufacture the batteries in America”
Ford did not hesitate to respond. The automaker notes that the Michigan plant is owned, controlled, and operated by Ford, with employees from the American company. “While others continue to import Chinese batteries, Ford is investing to manufacture batteries here in America,” the automaker stated in a response sent to InsideEVs.
Ford also emphasizes the exact nature of its agreement with CATL. It is neither a joint venture between the two companies nor a factory owned by a foreign entity. CATL primarily provides Ford with a technology license and related services that enable the automaker to produce LFP cells on its own. This is an important distinction, as CATL was specifically created to allow Ford to benefit from its expertise while retaining control over the manufacturing process.
The American company goes even further, describing the Transportation Secretary’s letter as a “reckless” attempt to make headlines. Ford points out a contradiction: just days before this criticism, the White House had itself praised this new battery factory in a statement.
The Batteries for Ford’s Future Electric Pickup
Ford’s ties with CATL are not new, and the Michigan project has been politically sensitive since its announcement. The factory is now gradually increasing production capacity. It is tasked with manufacturing LFP cells for Ford’s future Fathom, an electric pickup the company aims to sell for around $30,000.
The stakes are therefore strategic. Ford wants to reduce the price of its electric vehicles, but to do so it needs access to competitive battery technologies. Chinese companies currently possess expertise that is difficult to overcome, especially in the field of LFP cells. It is precisely this technological dependence that Washington seeks to reduce.
The United States Takes a Harder Stance Toward China
Distrust toward China’s auto industry has become one of the few issues on which Republicans and Democrats in Washington largely agree. In July, the U.S. Senate Commerce Committee unanimously passed a bill that would prevent companies controlled by more than 15% Chinese interests from selling cars in the United States.
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This measure would add to an already highly restrictive set of rules. The United States imposes 100% tariffs on cars manufactured in China and has adopted regulations banning certain automotive technologies from China. These technologies specifically contributed to Polestar’s withdrawal from the U.S. market.
The irony of the situation is that some of these barriers did not come from Donald Trump. The 100% tariffs and restrictions on Chinese technology were imposed during the Biden administration.