Battery company supported by Biden defends Chinese partner after Free Beacon report
An Idaho Company Defends Decision to Partner with Chinese Battery Company for Taxpayer-Funded Project
KORE Power, an Idaho-based company chosen for an $850 million loan from the Biden administration, is facing criticism for enlisting the help of a Chinese battery company, owned by a Chinese Communist Party official, to build a battery production facility in Arizona.
“KORE is an American company with a story of advancing energy storage that goes back more than 50 years,” said a spokesman for the company.
The Washington Free Beacon reported that KORE Power is co-owned by DFD New Materials, a Chinese battery company run by a Chinese Communist Party official. However, KORE clarified that it is actually co-owned by a wholly-owned subsidiary of DFD New Materials called DFD New Energy, which is also run by a Chinese Communist Party official.
KORE said its partnership with the Chinese company was “deeply vetted” by the Biden administration for “over two years” before the loan was approved.
The $850 million loan from the Department of Energy is aimed at countering China’s dominance in the battery industry. The Biden administration sees KORE’s battery facility as a way to strengthen the domestic battery supply chain and reduce China’s grip on the global market.
The Department of Energy confirmed that it will provide intellectual property, research and development, and engineering capabilities to help KORE build the Arizona facility.
While KORE’s ties to China have raised concerns, the company emphasized that it is committed to reducing the equity stake of Chinese shareholders. KORE stated that DFD New Energy’s stake has already been diluted to 7 percent due to other capital investments.
“Do-Fluoride New Materials (DFD) holds no ownership interest in the Company, much less a controlling interest in KORE,” said a KORE spokesman.
KORE’s relationship with DFD New Materials and DFD New Energy is also the subject of a legal dispute in Idaho. Chenco Engineering, a German company, won a $10 million judgment against DFD New Materials for technology theft. Chenco Engineering has requested an Idaho court to garnish any payments between KORE and DFD New Materials to collect the money.
KORE acknowledged that DFD New Energy would assist in building the proposed battery plant, but emphasized that any intellectual property created by KORE will be solely US-owned.
The news of KORE’s partnership with the Chinese battery company has raised concerns among watchdog groups and China experts.
“It’s outrageous that a company partly owned by a Chinese company with ties to the CCP would be rewarded with taxpayer money,” said Caitlin Sutherland, executive director of Americans for Public Trust.
In response to the Free Beacon‘s report, KORE accused the publication of underestimating its staff count and stated that it has been expanding its workforce.
What concerns have critics raised about KORE Power’s partnership with a Chinese battery company in regards to national security and intellectual property theft?
The global battery industry. The project, known as the Idaho Energy Complex, will establish a battery production facility in Arizona, creating thousands of jobs and boosting domestic manufacturing capabilities.
Critics argue that partnering with a Chinese company, particularly one with ties to the Chinese Communist Party, presents a national security risk and raises concerns about intellectual property theft. They question the Biden administration’s decision to provide taxpayer-funded support to a company that has connections to China, given the ongoing tensions between the United States and China on trade and technology issues.
In response to the criticism, KORE Power has defended its decision to partner with the Chinese battery company. The company emphasized its own history and expertise in energy storage, highlighting its long-standing contributions to advancing the industry. According to KORE, the partnership underwent a rigorous vetting process by the Biden administration, lasting over two years, before finally receiving approval.
KORE Power’s clarification regarding its ownership structure aims to address concerns regarding the involvement of a Chinese Communist Party official. The company made it clear that it is actually co-owned by a wholly-owned subsidiary of DFD New Materials, called DFD New Energy, which is managed by an individual associated with the Chinese Communist Party.
While the concerns raised about the partnership are valid, it is important to note that the Biden administration’s decision to support KORE Power’s project was not made lightly. The vetting process conducted over several years indicates a thorough assessment of the potential risks and benefits of the partnership. The administration’s goal is to bolster the domestic battery industry and reduce reliance on China, which currently dominates the global market.
Furthermore, it is worth mentioning that collaborations between American and Chinese companies are not uncommon. Many businesses rely on international partnerships to access global markets, benefit from shared resources, and drive innovation. However, in the context of national security and sensitive technology industries, additional precautions must be taken to ensure the protection of intellectual property and mitigate potential risks.
As the Idaho Energy Complex moves forward, it is paramount that KORE Power and its Chinese partner operate transparently and adhere to all applicable regulations and security measures. It is the responsibility of both companies to demonstrate their commitment to protecting American interests and safeguarding intellectual property.
In conclusion, KORE Power’s decision to partner with a Chinese battery company has sparked controversy and raised concerns about national security and intellectual property theft. However, the company’s long-standing contributions to the energy storage industry and the rigorous vetting process by the Biden administration should be taken into account. Moving forward, it is crucial that all parties involved prioritize transparency and security to ensure the success of the Idaho Energy Complex and safeguard American interests.
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