MARSHALL, Mich. (Michigan News Source) – Last week, separate U.S. House of Representatives committees announced their intent to investigate Ford Motor Company’s potential involvement and partnership with the foreign Chinese Battery Company, Contemporary Amperex Technology Co. Ltd (CATL), who are looking to build a plant together in Marshall.
The House Ways and Means Committee and Select Committee on the Chinese Communist Party, led by Chairmen Jason Smith (R-Missouri) and Mike Gallagher (R-Wisconsin) sent a joint letter to Ford asking for details about the deal between the car manufacturer and China.
“Ford has argued that the deal will create thousands of American jobs, further Ford’s “commitments to sustainability and human rights,” and lead to American battery technology advancements. But newly discovered information raises serious questions about each claim. Specifically, information regarding the proposed partnership agreement between Ford and CATL suggests that a significant portion of these well-paying jobs will be given to citizens of the People’s Republic of China (PRC)—not Americans,” the two wrote in a letter to Ford.
Many of the concerns mentioned in the letter centered around the workers that would be present at the plant as part of the partnership between Ford and CATL, as well as how the materials for the batteries are sourced.
“This apparent obfuscation of a continued link between CATL and Xinjiang Lithium raises serious ethical and legal concerns. According to the U.S. Department of State, Treasury, and Commerce, “businesses and individuals that do not exit supply chains, ventures, and/or investments connected to Xinjiang could run a high risk of violating U.S. law,” like the Uyghur Forced Labor Prevention Act,” the letter said.
Additionally, the two requested the following documents be provided from the company after requesting similar information in a letter from mid-April.
“A copy of the licensing agreement between Ford and CATL—including all appendices— in both English and Chinese; All documents and communications exchanged between Ford and CATL referring or relating to the licensing agreement in the original language, i.e. not in translation; and All documents and communications between Ford and the Biden Administration referring or relating to the Ford/CATL licensing agreement and/or achievable tax credits,” the letter said.
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The legislators also asked several questions regarding the safety of the materials that would be used on the site, but also the nature of the workers’ roles in the plant.
“How many PRC nationals will be employed by BlueOval Battery Park Michigan? Under what visa class will these workers be entering the United States? What is their expected length of stay per visit and how many visas are expected to be requested for PRC nationals?” the letter later asked, “With the recent updates to the PRC Counter-Espionage Law, raids of foreign audit and due diligence companies, and new limits on PRC supply chain due diligence, how will Ford ensure imports from CATL to produce LFP batteries in Michigan are free of forced labor or inputs from Xinjiang?”
The request comes after Michigan legislators have repeatedly inquired about the nature of the relationship between the two entities, and for a copy of their agreement which has been dodged before.
“The plant is going to be fully owned by a subsidiary of Ford Motor Company, so this will be an American investment made in Michigan,” Chris Smith, Chief Government Operations Officer Ford Motor company said before a House Appropriations Committee meeting. “There aren’t going to be any foreign partners, our relationship with CATL will be as a technical service provider. They are going to be providing technical services for the project; the project is going to be owned, operated, and run by a subsidiary of the Ford Motor Company making batteries that are going to be installed in Ford vehicles.”
When asked to clarify the contract between Ford and CATL, Smith admitted that the contract was still under negotiations and was still under review so a contract was not available to share, but he reiterated that there is not a partnership between Ford and CATL, but rather they were a technical service provider.
The letter concluded by asking for the documents and answers to the questions to be provided by August 10. A full copy of the joint letter can be found here.
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