Pentagon Blacklist Raises Concerns Over Ford’s Partner In Michigan EV Factory

The Pentagon has added Chinese battery maker CATL to its list of military-linked companies, drawing attention to its collaboration with Ford Motor Company on a $3.5 billion electric vehicle (EV) factory in Michigan. The project, heavily supported by Gov. Gretchen Whitmer (D) with nearly $2 billion in taxpayer-funded subsidies and tax breaks, has faced sharp criticism since the announcement.

CATL is a leading global battery supplier and a critical player in China’s dominance of the EV market. The Pentagon’s designation ties the company directly to China’s military ambitions. Zeng Yuqun, CATL’s founder, has been identified as a member of a Chinese Communist Party (CCP) advisory committee focused on advancing the nation’s strategic goals. Critics have long expressed concerns over CATL’s influence on lithium supply chains, essential for EV production.

Ford initially announced the partnership in early 2023, touting plans to create 2,500 jobs at the Michigan facility and significantly boost EV battery production in the United States. However, consumer demand for EVs has declined, leading Ford to scale back the project. The Pentagon’s recent designation has only added to the controversy surrounding the factory.

Rep. John Moolenaar (R-MI), who leads the House Select Committee on the CCP, criticized the deal, emphasizing the risks of engaging with companies linked to China’s government. He stressed that such partnerships compromise national security and urged a closer review of foreign investments in critical U.S. industries.

In 2021, reports revealed that several Chinese investors with CCP ties held stakes in CATL, reinforcing fears of Beijing’s influence over the company. The Pentagon’s action marks a significant step in highlighting the potential dangers of such partnerships. Michigan taxpayers contributed significantly to the project despite these risks.

The Michigan facility is part of a broader effort by Ford to secure its EV battery supply chain amid growing competition from other automakers. The factory’s planned capacity of 35 gigawatt-hours per year was expected to strengthen Ford’s position in the EV market.

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