GOP reps want feds to probe Chinese firms over Ford Michigan battery plant

The chairs of two U.S. House committees are calling upon the Biden administration to investigate four Chinese companies in connection with Ford Motor Co.'s rising battery plant in south-central Michigan's Marshall.

Ford last year announced a licensing agreement with China-based Contemporary Amperex Technology Co. Ltd. to use its leading technology for lithium-iron-phosphate batteries for electric vehicles that are less expensive and have less of a fire risk. Although the Dearborn automaker will build the batteries at the Marshall plant it owns alone and will operate alone, the plan drew concerns from some U.S. Republican lawmakers that U.S. tax subsidies could end up in China's pocket.

Now, the House Select Committees on the Chinese Communist Party and on Energy and Commerce are calling in letters upon the U.S. Commerce and Treasury departments to look into supplier ties of four companies they say are involved in the Ford plant project. The committee chairs allege connections to the Chinese military, Chinese Communist Party, North Korean government and human rights abuses of Uyghur Muslims in China's Xinjiang region that the country denies. The names of the companies were redacted in letters provided to The Detroit News.

One of the companies is involved with the concept design of the plant, according to the letters. The other three work in information technology services. Republican Reps. Mike Gallagher of Wisconsin with the CCP committee and Cathy McMorris Rodgers of Washington with Energy and Commerce call for a review on whether to impose export restrictions.

"It is unconscionable for Ford to purchase critical IT infrastructure from a Chinesecompany that facilitate sanctions evasion activity on behalf of the North Korean government," Gallagher and McMorris Rodgers wrote. "Indeed, this poses significant cybersecurity risks."

A letter sent to Ford CEO Jim Farley also requests that a representative from the Dearborn automaker discuss the company's due diligence around its agreement with CATL.

"We’ve been helping the committees understand this Ford wholly owned and operated project," Ford spokesperson T.R. Reid said. "We follow all government regulations across our business. Beyond legal requirements, Ford suppliers also must meet our higher standards for conduct, including to protect human rights, and are obligated to extend them to the vendors they might work with, too."

All of the details of the licensing agreement with CATL haven't been completed, Reid said.

Ford in November scaled back its investment in the Marshall plant after it paused work for two months, citing slowing EV demand growth. Initially, Ford had planned a $3.5 billion plant, but cut the capacity by nearly half.

bnoble@detroitnews.com

@BreanaCNoble