Major US Automaker Mum After Pentagon Labels Chinese Business Partner As National Security Threat

Ford has yet to address the Pentagon’s Monday designation of a Chinese business partner, a battery maker named CATL, as a Chinese Military Company.

The Pentagon added CATL to its official list of Chinese Military Companies on Monday, meaning that the Pentagon has determined to be a company contributing to the Chinese military base or providing commercial services while owned, controlled, or acting on behalf of any Chinese military entity, according to the Pentagon and Dechert LLP, a multinational law firm. Ford’s arrangement with CATL will allow Ford to use CATL technology and services at a Michigan plant that will produce electric vehicles (EVs), according to Autoweek, but the company has not released any statement on the new listing and did not respond to several Daily Caller News Foundation inquiries regarding the DoD’s designation.

“China is not simply seeking access to our critical infrastructure systems; its companies, like CATL, are preemptively positioning to compromise and control them. CATL’s role in the battery sector mirrors Huawei’s in telecom — it’s a strategic bid for dominance with far-reaching national security implications,” Craig Singleton, a China fellow at the Foundation for Defense of Democracies (FDD), said in a statement about CATL’s listing. “Volt Typhoon showed us the stakes. Washington must act decisively as CATL battery projects proliferate across the U.S., embedding themselves in vital energy systems. Pursuing green energy shouldn’t mean sacrificing security—it’s time to halt CATL’s advance before the damage becomes irreversible.”

CATL said that the Pentagon made a mistake in naming it as a Chinese Military Company, adding that its business with Ford is going ahead as planned and that it could take legal action against the DoD for its listing.

“CATL has never engaged in any military-related business or activities, so this designation by the Department of Defense is a mistake. It does not restrict CATL from conducting business with entities other than DoD and is expected to have no substantially adverse impact on our business,” CATL said in a statement provided to the DCNF. “We will proactively engage with DoD to address the false designation, including legal action if necessary, to protect the interests of our company and shareholders as a whole. Our cooperation with Ford is progressing smoothly as planned.”

While CATL is disputing that it is linked to the Chinese military, Republican lawmakers have previously urged the Pentagon to place the company on the Chinese Military Companies list due to concerns about the company’s relationship with the Chinese Communist Party (CCP) and that the company may be helping the Chinese military by advancing its battery infrastructure. A separate October 2023 analysis by FDD’s Singleton concluded that CATL’s presence in the U.S. market poses enduring espionage and security risks.

Tesla, the EV manufacturer owned by Elon Musk, also worked with CATL, according to InsideEVs and Bloomberg News. Tesla firm did not respond immediately to a request for comment regarding CATL’s designation.

Republican Rep. John Moolenaar of Michigan, the chairman of the House Select Committee on the CCP, characterized the addition of CATL and other firms to the DoD’s list as a good step toward identifying and managing possible risks to U.S. national security in a statement obtained by the DCNF.

“There is no such thing as a private company in China and I am encouraged to see that the Pentagon has updated its 1260H list to include Chinese military companies active on U.S. soil. The Select Committee has highlighted these companies because they work with or are affiliated with the Chinese military and are active threats to American security,” Moolenaar said, referencing the official title for the list of Pentagon-designated Chinese Military Companies. “This includes drone company Autel, biotech companies Orgincell and MGI, semiconductor company CXMT, technology company Quectel, and CATL, an electric battery company. We cannot allow these loaded guns to threaten our economy and security, and the Select Committee will continue to be a watchdog for the American people in the new Congress.”