US Transportation Department demands Ford sever ties with CATL, Geely, BYD

September 9, 2026 at 10:39 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The U.S. Transportation Department has demanded Ford Motor review its partnerships with Chinese companies CATL, Geely, and BYD, citing national security risks. Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley expressing serious concern over the automaker's deepening dependence on Chinese technology and manufacturing. Ford called the letter a misguided step taken for headlines, saying it owns and controls its Michigan plant and creates U.S. jobs.

Key Facts

Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley expressing serious concern over ties with CATL, Geely, and BYD.
Ford uses licensed battery technology from CATL at its plant in Marshall, Michigan, a company the Pentagon has listed as suspected of ties to China's military.
Ford plans to keep producing the Lincoln Nautilus crossover in China until at least 2030, extending its reliance on Chinese manufacturing.
Ford called the Transportation Department's letter a misguided step taken for headlines and said it owns and controls the Michigan plant and creates U.S. jobs.
The conflict comes as Congress discusses a stricter ban on Chinese vehicles in the U.S. market, with major automakers urging passage of a law by year-end.

The Letter

Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley expressing serious concern over the company's business ties with Chinese manufacturers CATL, Geely, and BYD. Duffy said that when a company deliberately increases operational dependence on strategic competitors, it ceases to be the reliable partner that the American public and the U.S. Transportation Department require. The letter specifically criticized Ford's use of licensed battery technology from CATL at its plant in Marshall, Michigan. CATL was previously added by the Pentagon to a list of companies suspected of links to China's armed forces.

Ford's Response

Ford called the Transportation Department's letter a misguided step taken for headlines. The company said that unlike other companies importing Chinese batteries, Ford is investing in production directly in the United States. Ford stated that it owns the plant, controls operations, and provides jobs. The company emphasized that its agreement with CATL is limited to technology licensing.

Broader Pressure

The conflict over Ford comes amid another tightening of U.S. policy toward the Chinese auto industry. Congress is discussing a stricter ban on the use of Chinese vehicles in the U.S. market, and major automakers are urging passage of a corresponding law by the end of the year. U.S. lawmakers are particularly active against the possible admission of BYD and other Chinese manufacturers to car sales in the United States. In July, Representative John Moolenaar, chairman of the House Select Committee on China, said Ford's cooperation with Geely could help Beijing strengthen its position in the global auto market.