Rubio Introduces Bill to Block EV Tax Credits to Ford’s Plant Using Chinese Technology

U.S. Senator Marco Rubio (Republican from Florida), was the top Republican in the Senate Intelligence Committee. He introduced a Bill Thursday, block Chinese battery company subsidies

If enacted Ford’s new electric vehicle plant that licenses a Chinese manufacturer’s technology won’t be eligible for the EV tax credits appropriated in the Inflation Reduction Act.

Additionally, it disqualifies a U.S.-based company from doing business in the United States. “relies on technology via a licensing agreement with a foreign entity of concern” Rubio’s bill covers other categories such as American companies under the substantial control of a Foreign Entity of Concern, 20% or more owned or a joint venture that is considered a Foreign Entity of Concern.

Any entity governed under a “Covered nation” are considered Foreign entities that are of concern. Current covered nations include China, Russia, North Korea, Iran, and Russia.

Ford replied to Rubio saying “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.”

Ford announced last month a partnership with Contemporary Amperex Technology Co. Ltd., China’s EV battery manufacturer. Battery Park Marshall, Michigan. The plant will open in 2026. It will operate as a subsidiary of American company. CATL will provide some equipment and workers.

Rubio also wrote to the Secretaries of Treasury, Energy, and Transportation asking for a Committee on Foreign Investment in the United States’ (CFIUS), review of the Ford-CATL license agreement. In the February press release, he stated that he wanted taxpayer dollars to be protected. “go to enrich PRC national champion CATL, or any other Beijing-supported company, directly or indirectly.”

Nick Iacovella (spokesman for the Coalition for a Prosperous America, or CPA), Previously told According to the Epoch Times, the Ford-CATL plant’s production tax credit amount could exceed $1 billion depending on the terms of the licensing agreement. This is based on the factory’s annual output of 35 gigawatts (or 35 million kilowatts-hours) and the IRA advanced manufacturing credit of $45 per kilowatt hour. CPA is an advocacy organisation that represents only American manufacturers. Ford is not a CPA member.

Rubio calls EVs a “sinister” in a Newsweek op-ed. “Trojan horse that Beijing will use to threaten, divide, and outcompete the U.S.”

“Ford’s massive project will bring 2,500 new jobs to Marshall’s small, historic farming community, but it will also bring America’s greatest geopolitical adversary into the heartland,” He concluded.