Ford’s Chinese partnership aims to make batteries out of cheaper materials.
QUICK FACTS:
- Ford Motor Company faced heavy criticism after announcing its plans to move forward with its partnership with a Chinese company for the production of car batteries, centering the move in Michigan.
- Production will begin in 2026.
- The push to save money using cheaper materials comes as Ford lost billions of dollars due to poor investments and quality, leading to recalls.
- News of the traditionally American-made company collaborating with the Chinese Contemporary Amperex Technology (CATL) produced criticism from United States leaders. CATL is owned by Chinese state-owned private equity firm Bohai Harvest RST, 10% of which is tied to Joe Biden’s son Hunter Biden’s company, Skaneateles.
- Governor Glenn Youngkin (R-VA) removed his state from consideration of the $3.5 billion battery plant, calling the car company a “Trojan horse.”
- “I look forward to bringing a great company there,” said Youngkin. “It won’t be one that uses kind of a Trojan-horse relationship with the Chinese Communist Party in order to gain.”
- Ford’s battery plan drew the attention of congressional leaders as well, with one source close to Republican leadership saying, “The closer Ford gets to the Chinese communists, the closer we’re going to look at their business.”
- “We’re quickly approaching the point where Ford’s business practices are becoming a national security threat,” they added.
RESPONSE FROM MICHIGAN:
- The state of Michigan approved over $1 billion in incentives to house the electric battery plant.
- The project is reported to be designated as a “Renaissance Zone” and will reduce both real and personal property taxes, according to Reuters.
- “Ford is seeking close to a billion dollars in tax incentives from the State of Michigan,” said a Michigan Republican strategist.
- “That’s a billion dollars that will directly benefit the Chinese Communist Party. Republican lawmakers in Michigan should understand that this is an issue that will get national attention,” the strategist added.
BACKGROUND:
- Ford Motor Company recently paused production of its F-150 Lightning after the car’s battery performance was lacking during a pre-delivery quality inspection.
- “The team is diligently working on the root cause analysis,” said a Ford spokesperson.
- The model is manufactured in Dearborn, Michigan.
