Chinese Battery Maker In Michigan EV Project Added To Pentagon’s Military List

The Pentagon has classified CATL, a Chinese electric vehicle battery maker partnered with Ford on a Michigan factory, as a “Chinese military company”. The designation, which highlights CATL’s connections to the Chinese Communist Party (CCP), raises concerns about the $3.5 billion project supported by Gov. Gretchen Whitmer (D) with nearly $2 billion in subsidies.

CATL has played a key role in advancing China’s global dominance in EV battery production. Zeng Yuqun, the company’s founder, is a member of a CCP advisory committee focused on strategic economic and technological goals. Critics argue that these ties pose a risk to U.S. national security.

Ford’s collaboration with CATL, announced in February 2023, promised 2,500 jobs and a boost to Michigan’s economy. However, falling demand for electric vehicles led Ford to scale back the project, which has now come under additional scrutiny due to the Pentagon’s designation.

Rep. John Moolenaar (R-MI) expressed alarm over the partnership, warning of potential risks to sensitive U.S. industries. He stressed the need for greater oversight of foreign investments tied to adversarial governments to protect national interests.

The Michigan facility, planned to produce up to 35 gigawatt-hours of batteries annually, was a centerpiece of Ford’s EV strategy. CATL’s involvement was expected to provide cutting-edge battery technology, but its CCP links have fueled fears of espionage and economic manipulation.

Reports from 2021 revealed that several CCP-linked investors held stakes in CATL, further raising questions about its operations. The Pentagon’s action underscores the challenges of pursuing clean energy initiatives while addressing national security concerns.