This week brings the latest multi-billion dollar investment in U.S. battery manufacturing — but with a geopolitical twist, Ben writes.
The intrigue: Ford is licensing tech and using services from Chinese battery giant CATL, though the project is wholly owned by Ford.
- The agreement arrives as revelations of Chinese surveillance balloons have worsened already high U.S.-China tensions.
- The Information’s Steve LeVine reported that “in a display of the thorny politics,” President Biden declined an invite to join Michigan Gov. Gretchen Whitmer and Ford officials at the rollout.
- The White House didn’t respond to a request for comment on that report.
What they’re saying: GOP House Majority Leader Steve Scalise said the White House’s “leftist green agenda” makes the U.S. more reliant on China.
- “This from Ford shows certain companies are fine with that,” he said via Twitter.
- Virginia GOP Gov. Glenn Youngkin recently pulled his state from consideration for the Ford-CATL venture, calling it a “Trojan horse” for the Chinese regime.
The other side: Ford officials emphasized it’s a U.S.-owned project.
- CATL will “help us get up to speed so we can build these batteries ourselves — batteries made here in Michigan and built for America,” executive chairman Bill Ford said at the announcement.
- Via The Detroit News, Ford’s Lisa Drake noted automakers including Tesla already use imported CATL batteries, but in this project, Ford has “control over the manufacturing, control over the production, control over the workforce.”
- Ford expects the plant to qualify for major tech manufacturing incentives in the new climate law.
- The automaker noted nickel and cobalt are in high demand with limited supply, making them more costly.
- The batteries have different attributes that appeal to different customer needs, Ford said.
- NCM’s greater power and energy density enable more range, while LFP batteries charge faster and help cut vehicle costs.
