U.S. officials raise alarm over Ford’s CATL battery ties and Ford‑Geely venture in Spain
The Trump administration’s Transportation Department has criticized Ford’s collaboration with Chinese battery maker CATL and a Ford‑Geely joint venture in Spain, warning that reliance on Chinese technology gives Beijing a strategic foothold in Europe’s auto supply chain.
Electric‑vehicle supply chains are becoming a new fault line in tensions between Washington and Beijing, with Ford now in the middle.
On 8 September, the Trump administration criticized Ford Motor Company’s ties to China’s battery industry. U.S. officials voiced deep alarm over Ford’s cooperation with Chinese battery giant CATL and pointed to a Ford‑Geely joint venture in Spain, warning that these relationships increase reliance on Chinese technology.
According to the U.S. Department of Transportation, the Ford‑Geely venture in Spain gives China a strategic foothold in Europe. Officials see battery plants and related projects not just as industrial investments but as pieces of critical infrastructure that could leave Western carmakers and governments exposed if relations with Beijing deteriorate.
For Ford, access to Chinese battery technology offers a way to scale up electric‑vehicle production quickly and meet emissions rules and consumer demand. CATL is a major global supplier of lithium‑ion batteries, and partnerships can cut costs and speed factory roll‑outs. But U.S. criticism highlights the political and security risks now attached to such deals.
The concern in Washington is that embedding Chinese technology deep inside Western auto and energy systems could create long‑term dependence. If Chinese suppliers hold key intellectual property and production capacity, U.S. officials fear they could gain leverage over everything from consumer EVs to grid storage and other sectors that rely on similar batteries.
The stakes for Europe are different but related. Countries hosting Ford‑Geely projects hope they will bring jobs and investment in new green industries. At the same time, they must navigate pressure from a U.S. administration that wants allies to limit strategic reliance on China, even as European policymakers pursue their own approach to managing economic ties with Beijing.
How this dispute evolves will depend on whether Washington moves beyond public criticism to concrete measures. Signals to watch include any new U.S. rules on subsidies or tax credits for vehicles using Chinese‑linked batteries, responses from European regulators, and any decision by Ford to adjust, delay or restructure its partnerships with CATL or Geely in light of rising political risk.
Sources
- OSINT