Ford announced in February that it would open a new battery plant in Michigan. The factory will utilize CATL's (宁德时代) Lithium Iron Phosphate CTP technology from CATL, the world's leading power battery company. CATL will not own an equity stake in the plant, but it will license the technology to Ford for a fee.
House Ways and Means Committee Chairman Jason Smith (R - Missouri) and Select Committee on China Chairman Mike Gallagher (R - Wisconsin) recently asked Ford the question in a joint letter, Reuters and other domestic U.S. media reported. They asked Ford to answer questions about the licensing agreement with CATL, CATL's connection to forced labor, and whether the cooperation agreement may lead to job opportunities going to China.
According to the report of SNE Research, a South Korean research institution, the global installed capacity of power batteries will reach approximately 517.9 GWh in 2022, a year-on-year increase of 71.8%.
Based on the data of SNE Research, the ten companies with the largest installed capacity of power batteries in the world are CATL, LG New Energy, BYD (比亚迪), Panasonic, SK On, Samsung SDI, CALB (中创新航), Gotion High-Tech (国轩高科), Sunwoda (欣旺达) and Farasis Energy (孚能科技). Among these companies on the list, 6 are Chinese companies. Their total installed capacity accounts for 60.4% of the global market, an increase of 12.2% compared to 2021, showing a clear dominant position in the global power battery market.
After the CATL signed a cooperation agreement with Ford, the agreement has been continuously questioned by US lawmakers. Sen. Marco Rubio, R-Florida, sharply criticized the deal in the letter and pushed for legislation to prevent U.S. companies from receiving tax benefits through licensing agreements with sensitive entities backed by foreign governments. Meanwhile, Joe Manchin, chairman of the Senate Energy and Natural Resources Committee, also raised questions about the agreement.
Rep. Haley Stevens, D-Michigan, expressed concern on Twitter about the U.S.’s approach to large-scale battery production, arguing that years of lag has allowed China to dominate the field. As a member of the House Select Committee, Stevens said she supports Ford's plan to own and independently control the technology. She emphasized that in the process of catching up in the new energy vehicle industry, not only can we not stop investing, but we must not blame our own companies for no reason.