By David Shepardson
WASHINGTON, Jan 28 (Reuters) – The Republican chair of a U.S. House committee is scrutinizing Ford’s plan to repurpose its existing U.S. battery manufacturing facilities to produce lithium iron phosphate cells and grid-scale energy storage systems as part of its partnership with Chinese battery giant CATL.
In a letter to Ford CEO Jim Farley, Representative John Moolenaar raised concerns about the automaker’s plans to build data center batteries with technology from CATL and asked questions about Ford’s plan to enter the energy storage business with CATL, and if changes were made to the company’s licensing agreement with CATL since new eligibility restrictions were put in place under a law approved last year.
“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,” Moolenaar, a Republican from Michigan, wrote in a letter released Wednesday.
Ford in December said it was taking a $19.5 billion writedown and killing several electric-vehicle models. Ford said it would use its battery plants in Kentucky and Michigan to produce energy storage system batteries, and it plans to bring initial capacity online within 18 months.
Ford said “expanding LFP battery production here in the United States isn’t just an investment in energy security — it’s an investment in American workers. Every new facility means thousands of more high‑skill manufacturing jobs and stronger local economies.”
The company added it is confident those batteries meet tax credit eligibility requirements.
Moolenaar also wants Ford to answer if it plans a joint venture with Chinese automaker BYD. “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,” Moolenaar said.
Ford announced plans in 2023 to build a $3 billion battery plant in Michigan making battery cells using tech from CATL. The plant is expected to begin production this year. The factory in Marshall, Michigan, will also produce batteries for Ford’s $30,000 midsize EV truck.
(Reporting by David Shepardson in Washington; editing by Diane Craft)
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