EV Battery Supplier CATL Accused Of CCP Ties
Two Republican lawmakers have asked the US Defense Department to add CATL, a Chinese battery producer, to a list of restricted companies that may work with the Chinese military. CATL also supplies battery cells for EVs made by automakers like Mercedes-Benz, Tesla, BMW, and Ford. Ford is also currently building a battery plant in Michigan that will use licensed CATL cells, per Reuters.
Senator Marco Rubio, vice chair of the Intelligence Committee, and Representative John Moolenaar of the House Select Committee on China are behind the initiative. The two lawmakers went to Defense Secretary Lloyd Austin, asking that CATL be immediately placed on the list. In part, this is because Sen. Rubio and Rep. Moolenaar want to “send a powerful signal to U.S. companies that are currently weighing partnerships with CATL."
The company insists it is not controlled by the Chinese government, calling the lawmakers’ letter to Austin “factually inaccurate and completely groundless.” Conversely, the two Republicans allege that CATL has deep ties to the Chinese Communist Party and the military: “Contemporary Amperex Technology Limited (CATL) is an electric vehicle battery company with deep ties to the Chinese Communist Party and its armed wing, the People’s Liberation Army (PLA).”
The list is not legislative action against the company, but it has other ramifications per the Department of Defense. “Updating the Section 1260H list of ‘Chinese military companies’ is an important continuing effort in highlighting and countering the PRC's Military-Civil Fusion strategy. The PRC's Military-Civil Fusion strategy supports the modernization goals of the People's Liberation Army (PLA) by ensuring it can acquire advanced technologies and expertise developed by PRC companies, universities, and research programs that appear to be civilian entities.”
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Chase is an automotive journalist with years of experience in the industry. He writes for outlets like Edmunds and AutoGuide, among many others. When not writing, Chase is in front of the camera over at The Overrun, his YouTube channel run alongside his friend and co-host Jobe Teehan. If he's not writing reviews of the latest in cars or producing industry coverage, Chase is at home in the driver's seat of his own (usually German) sports cars.
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Gentlemen, I won't argue the merits of blocking the technology of companies associated with the CCP/PLA, just be aware of the slippery slope you are stepping onto. Nearly every large U.S. company has DOD contracts (Boeing, Lockheed Martin, GM, Ford, Stellantis, GE, Raytheon, etc.). It's not a big stretch to see that other countries might not like certain U.S. policies and similarly follow suit. This is could prove particularly troublesome for the U.S. economy since, in all likelihood, those foreign markets currently in the U.S. sphere would be picked up by China. It wouldn't be the first time that American politicians have stepped into the puddle of the law of unintended consequences. At least have a plan should those consequences materialize and not just blame the last administration.