CATL batteries are displayed during an expo in Xiamen, Fujian province, in September. (PHOTO PROVIDED TO CHINA DAILY)
Witch-hunting politicians in the United States seem bent on derailing Ford Motor Co's planned plant in partnership with Chinese battery company Contemporary Amperex Technology.
In a joint letter released on Friday, Jason Smith and Mike Gallagher, the Republican chairs of two House of Representatives committees, demanded that a probe be conducted into the $3.5 billion deal the Detroit automaker signed with CATL in February to build a factory in Michigan to produce batteries for some of its electric vehicles. Republican Senator Marco Rubio has already introduced a bill that seeks to bar consumer tax credits for electric vehicles produced using CATL technology.
Those pointing an accusing finger at the Ford-CATL project are opposing for the sake of opposing. The politicizing of technological and economic issues has made them turn a blind eye to the benefits that the cooperation could yield for both sides.
For Ford, the decision to forge a partnership with the world's largest manufacturer of lithium batteries is purely out of business considerations. That the Michigan plant is a wholly owned Ford subsidiary rather than a joint venture with CATL is obviously meant to send the message that "Ford controls the plant", to dispel possible national security concerns, which are repeatedly cited by some in the US as an excuse to cut off China-US cooperation.
The plant, which is scheduled to open in 2026 and employ about 2,500 people, will license technology from CATL to produce new lithium iron phosphate, or LFP batteries, to replace the more costly nickel cobalt manganese batteries that Ford is currently using.
LFP batteries are also exceptionally durable and tolerate more frequent and faster charging, which will help increase Ford's EV production and profit margins. The facility, once completed, will have 40 GWh of battery capacity capable of powering around 400,000 Ford EVs, which are also expected to qualify for half of the up to $7,500 federal tax incentives for consumers purchasing an EV as they meet local production requirements.
Michigan Governor Gretchen Whitmer has welcomed the project, saying it "will uplift local families, small businesses, and the entire community and help our state continue leading the future of mobility and electrification".
The US is already lagging behind in EV production, with its EVs accounting for only around 6 percent of total vehicle sales, as compared with China's which account for nearly one-third. Any attempts to derail the Ford-CATL battery project will only worsen the situation for the US and compromise President Joe Biden's emissions reduction goals.
The "scrutiny" of the project, which is good for Ford, good for US workers and good for the US, serves to show the ridiculous lengths some US lawmakers are prepared to go to in their efforts to politicize economic and trade issues.