US Lawmaker Raises Concerns Over Ford's China Battery Plans

Congressman questions Ford's deals with CATL and potential BYD partnership amid security and tax credit issues.

Jan. 29, 2026 at 1:47pm

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The chairman of the US House Select Committee on China has written a letter to Ford CEO Jim Farley expressing concerns over the automaker's plans to produce data center batteries using technology licensed from Chinese company CATL, which has been designated as a Chinese military company. The letter also raises questions about potential changes to Ford's licensing agreement with CATL and a possible new partnership between Ford and Chinese automaker BYD.

Why it matters

The letter highlights growing bipartisan concerns in Congress over the national security implications of US companies partnering with Chinese firms, especially those with military ties, as well as the potential impact on eligibility for clean energy tax credits under new legislation.

The details

In the letter, Congressman John Moolenaar asks Farley about Ford's intention to enter the energy storage sector with CATL, and whether any changes were made to the company's licensing agreement with CATL after new eligibility restrictions came into effect. Moolenaar also warns that a potential partnership between Ford and BYD would "diminish Ford's status as an iconic American company" and further expose the US auto supply chain to Chinese influence.

  • On January 15, 2026, Moolenaar issued a warning to Ford about partnering with a second Chinese battery company.
  • In late January 2026, Moolenaar sent the letter to Ford CEO Jim Farley.

The players

John Moolenaar

Chairman of the US House Select Committee on China.

Jim Farley

CEO of Ford Motor Company.

CATL

A Chinese battery company that has been designated as a Chinese military company by the Pentagon.

BYD

A Chinese automaker that Ford is reportedly in discussions to potentially partner with.

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What they’re saying

“If reports that Ford is in discussions to potentially partner with a second Chinese battery company were to come true, it would diminish Ford's status as an iconic American company. China has already shown in recent months that it will weaponise the auto supply chain. This is a serious vulnerability and it would only get worse if Ford enters into a new partnership with BYD. Ford should work with our nation's allies, not our adversaries.”

— John Moolenaar, Chairman, US House Select Committee on China (Select Committee on China)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the Congress about the national security risks of US companies partnering with Chinese firms, especially those with military ties, as well as the potential impact on clean energy tax credits. It underscores the delicate balance American automakers must strike between global competitiveness and protecting domestic interests.