Moolenaar Questions Ford About Its Chinese Military Company Partnership and Use of Federal Tax Credits

Chairman John Moolenaar of the Select Committee on China has sent a letter to Ford Motor Company CEO Jim Farley concerning the automaker’s plans to build data center batteries with technology from CATL—a Pentagon-designated Chinese military company. In the letter, Moolenaar questions Farley on Ford’s plan to enter the energy storage business with CATL, and if changes have been made to the company’s licensing agreement with CATL since new eligibility restrictions were put in place.

"Public statements from Ford indicate that the company plans to repurpose its existing U.S. battery manufacturing facilities to produce lithium iron phosphate (LFP) cells and grid-scale energy storage systems. This effort would leverage technical know-how licensed from Contemporary Amperex Technology Co., Limited (CATL), a Department of War-designated Chinese military company. Ford’s apparent changes follow enactment of the One Big Beautiful Bill Act, which placed new restrictions on eligibility for clean energy tax credits—including limits related to licensing arrangements with prohibited foreign entities," writes Moolenaar in the letter.

"In particular, the statute disqualifies tax credits for licensing agreements that are modified after the bill’s enactment, or that involve ongoing technical dependence or revenue-sharing with a foreign-influenced entity. Ford’s revised business plan raises important questions about whether the original licensing terms have been updated, expanded, or otherwise altered to accommodate the company’s new focus on energy storage systems and data center markets," he continues.

The letter also requests clarification on a possible new reported partnership between Ford and BYD, a Chinese automaker, following Moolenaar's warning to Ford earlier this year.

"If reports that Ford is in discussions to potentially partner with a second Chinese battery company were to come true, it would diminish Ford’s status as an iconic American company. China has already shown in recent months that it will weaponize the auto supply chain. This is a serious vulnerability and it would only get worse if Ford enters into a new partnership with BYD. Ford should work with our nation’s allies, not our adversaries,” said Moolenaar on January 15.

Read the full letter here.