The U.S. Department of Transportation has raised concerns about Ford Motor Company's increasing involvement with Chinese partners. Ford has invested about $3 billion in its BlueOval Battery Park Michigan facility in Marshall, Michigan, which is beginning production of lithium iron phosphate batteries in 2026. The facility will focus on producing lithium iron phosphate batteries, a technology that also has applications in energy storage systems. Ford has said the plant will also produce smaller LFP cells for residential energy storage systems.
Ford’s strategic choices have drawn criticism from U.S. officials who say the company is becoming too dependent on Chinese companies, according to CNBC. The letter from the Department of Transportation expressed worries about Ford's future direction and its relationship with China. Transportation Secretary Sean Duffy specifically cited Ford's use of licensed battery technology from CATL, its partnership with Geely in Spain, and discussions involving BYD.
The move has sparked debate over how much foreign influence is acceptable in American industries. Ford’s decision to invest heavily in battery technology reflects the growing importance of electric vehicles in global markets. The company's plan includes not only manufacturing but also partnerships that involve Chinese companies.
Some officials argue that Ford’s actions could pose risks to national security and economic independence. The government has not yet taken formal action against Ford, but the letter signals growing scrutiny. Duffy said the department was particularly concerned about Ford's reliance on technology licensed from CATL. The U.S. Department of Defense placed CATL on its Section 1260H list of companies it identifies as Chinese military companies in January 2025, and the government's updated 2026 list continues to include CATL.
Ford’s investments in battery production are part of a broader effort to meet rising demand for electric vehicles. The company is working to ensure its supply chain remains secure and efficient as it expands globally.
Critics say Ford’s cooperation with Chinese firms may undermine American competitiveness in the long term. The situation highlights tensions between international business and national security interests.
Ford has publicly responded to the government’s concerns, calling Duffy's letter a "wrongheaded attempt to capture headlines" and stressing that Ford owns and controls the Michigan battery plant and employs its workforce. The debate over Ford's approach is likely to continue as more companies seek global partnerships. Reuters reported that Duffy also criticized Ford's decision to continue producing the Lincoln Nautilus in China until production is moved to the United States in 2030.
Ford's broader $5 billion electric vehicle manufacturing initiative includes about $3 billion for BlueOval Battery Park Michigan and approximately $2 billion to transform the Louisville Assembly Plant in Kentucky. Energy storage systems are a key part of this expansion, as they support grid stability and renewable energy use. Ford says the combined investments are expected to create or secure nearly 4,000 jobs.
Ford’s strategy includes both domestic production and international collaboration. The U.S. government is watching closely to balance economic growth with national interests.
Ford’s future decisions may set a precedent for how American companies engage with foreign markets. This development underscores the complex relationship between global business and domestic policy.
The Department of Transportation's letter is one of several recent signals that U.S. officials are paying attention to corporate foreign ties. Ford’s involvement in battery technology reflects a shift toward more sustainable and advanced energy solutions.
The company's actions are being closely monitored by lawmakers and industry experts alike. Ford’s expansion into battery manufacturing is not just about cars but also about energy infrastructure. Ford announced in December 2025 that it would use wholly owned facilities in Michigan and Kentucky as part of a new battery energy storage business, with shipments of large-scale storage systems planned to begin in 2027.
As the electric vehicle market grows, so do concerns over supply chain control and national security.