The Trump administration has accused Ford of strengthening ties with the Chinese battery manufacturer CATL, intensifying a debate over foreign supply chain dependencies and national security risks. The controversy exposes growing friction between U.S. officials and automakers over partnerships with foreign firms in strategically important sectors.
In an official letter to Ford CEO Jim Farley, Secretary of Transportation Sean Duffy alleged the company had formed alliances with Chinese-backed firms, pointing to its collaboration with CATL—a dominant player in global battery production—as proof. Duffy also questioned Ford’s participation in the Detroit Auto Show, claiming the automaker had promoted Chinese-led joint ventures in the United States. Ford rejected the accusations as unfounded, calling the letter a thinly veiled attempt to attract media attention.
This dispute follows a broader administration effort to reduce dependence on foreign supply chains through tariffs and domestic manufacturing incentives. Earlier this year, similar pressure was applied to Canadian automakers, though industry experts suggest that Chinese firms, already the world’s largest battery producers, may expand into the U.S. market over the coming decade.
Ford countered the criticism by emphasizing its American ownership and record of job creation. The company operates BlueOval Battery Park in Michigan, where it uses CATL technology under a licensing agreement, not a joint venture, as Duffy suggested. Ford stressed it maintains full control over the facility, which employs 1,700 local workers.
The administration also objected to Ford’s decision to postpone relocating production of certain Lincoln models from China to the U.S. until 2030, arguing the delay increased economic reliance on Beijing. Ford defended the timeline as operationally necessary and offered to provide further evidence of its U.S. commitments if approached privately.
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Duffy’s letter specifically challenged Ford’s long-term strategy, claiming the automaker had aligned itself with state-backed Chinese entities. Ford dismissed the claim, describing its partnership with CATL as a service and licensing arrangement, not a collaborative effort. The company argued its deal supported domestic manufacturing, including investments in electric vehicle infrastructure.
The conflict highlights ongoing divisions among U.S. lawmakers and industry leaders over foreign investment in sensitive sectors. While Donald Trump had previously expressed openness to Chinese manufacturers establishing U.S. operations, opposition from policymakers and automakers has complicated such arrangements. The Ford dispute reflects concerns about how deeply automakers are integrating with Chinese supply networks, even as the U.S. seeks to counter China’s lead in critical technologies.
Ford’s public response criticized the administration’s approach, noting Duffy’s letter lacked concrete evidence. The company stated it would have willingly provided additional proof of its U.S. commitments if contacted privately before the matter became public.
Industry experts suggest the disagreement may influence how automakers respond to geopolitical pressures, particularly as the U.S. and China vie for dominance in the electric vehicle supply chain. Ford’s position, balancing domestic production with global partnerships, may shape how companies address national security concerns while adapting to market demands.
Ford’s BlueOval Battery Park in Michigan remains a key example of its commitment to U.S.-based manufacturing, employing workers and utilizing licensed CATL technology. The facility’s operations demonstrate the company’s effort to reconcile foreign collaboration with domestic production goals.