Trump Administration Warns Ford Over Battery Licensing Deal With China's CATL

The U.S. Department of Transportation has raised federal oversight concerns regarding Ford Motor Co.’s technological partnerships with Chinese suppliers, according to a letter delivered to the automaker on Tuesday and first reported by CNBC Business.

In the correspondence addressed to Ford Chief Executive Officer Jim Farley, Transportation Secretary Sean Duffy expressed "profound concern" over the Detroit automaker's relationship with Chinese firms, pointing out potential risks to the domestic automotive sector and broader corporate operations.

The cabinet official specifically questioned Ford's current trajectory regarding its ties to battery developer Contemporary Amperex Technology Co., better known as CATL, asking how the arrangement aligns with "American national automotive manufacturing integrity, supply chain exposure, and reliance on technologies of foreign adversaries."

Under its current business agreement, Ford licenses technical intellectual property from CATL to produce lithium iron phosphate battery cells, an increasingly common chemistry utilized across electric vehicle lines and power infrastructure.

In the letter, Duffy noted that "while DOT recognizes the intense competitive pressures of the global market, the Company's recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises."

The partnership between Ford and CATL was initially revealed in 2023, but the licensing deal has attracted renewed political and regulatory scrutiny amid ongoing trade tensions between the United States and China.

Federal scrutiny has also expanded as Ford seeks to deploy the licensed Chinese battery technologies beyond passenger vehicles and into commercial energy storage systems.