Rubio takes aim at planned Ford US battery plant using Chinese technology

By David Shepardson

WASHINGTON (Reuters) – U.S. On Thursday, Senator Marco Rubio introduced legislation to target Ford Motor’s agreement to use technology from Chinese battery manufacturer CATL in its plan to spend $3.5B to build a Michigan battery plant.

Rubio, who is the Intelligence Committee’s top Republican member, introduced legislation that would prohibit tax credits for electric vehicle battery production using Chinese technology. “significantly restrict the eligibility of IRA tax credits and prevent Chinese companies from benefiting.”

In response to Rubio, Ford stated that “making those batteries here at home is much better than continuing to rely exclusively on foreign imports, like other auto companies do. A wholly owned Ford subsidiary alone will build, own and operate this plant. No other entity will get U.S. tax dollars for this project.”

Rubio asked for the Biden government to review Ford’s deal to utilize technology from CATL.

Rubio requested that the United States Committee on Foreign Investment (CFIUS), immediately review the Ford-CATL licensing agreement.

Rubio announced the agreement “will only deepen U.S. reliance on the Chinese Communist Party for battery tech, and is likely designed to make the factory eligible for Inflation Reduction Act (IRA) tax credits.”

CFIUS, a U.S. Treasury-led Interagency Panel that examines proposed transactions to ensure they are not in danger of national security.

Although Treasury declined to comment on the matter, Jennifer Granholm, Energy Secretary, stated last month that the Ford deal would be implemented. “bringing advanced manufacturing capabilities from overseas to the United States is key to our competitiveness, will stimulate our economy, and create good-paying American jobs.”

Ford has said the plant would create 2,500 jobs and begin producing lower cost and faster recharging lithium-iron-phosphate batteries in 2026.

The $430Billion IRA imposes limitations on battery sourcing. It was created to get the United States out of the Chinese supply chains for electric vehicles (EVs). If any EV battery component was manufactured by a company other than a manufacturer listed in the IRA, credits will be barred. “foreign entity of concern,” In a provision that is aimed at China.

Separately Joe Manchin, a Democratic Senator, criticized remarks made by a White House adviser claiming that Chinese companies will be “big players” In growing domestic energy production

“It is beyond irresponsible for someone speaking on behalf of the White House to not only condone but also advocate for sending American tax dollars to Chinese companies,” Manchin stated.

(Reporting and editing by David Shepardson; Editing done by Lincoln Feast, Diane Craft).