Transportation Secretary Sean Duffy sent a letter to Jim Farley that pressed Ford on its strategy with Chinese partners, citing risks to "American national automotive manufacturing integrity, supply chain exposure, and reliance on technologies of foreign adversaries." He singled out Ford's relationship with Contemporary Amperex Technology Co. (CATL) and pointed to a framework Farley discussed at a Detroit auto show earlier this year that Duffy described as intended "to facilitate Chinese joint ventures on United States soil."
Duffy's letter was blunt: "While DOT recognizes the intense competitive pressures of the global market, the Company's recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises." Separately, the administration said it has "profound concern" about Ford's ties to Chinese firms.
Ford dismissed the outreach as a "wrongheaded attempt to capture headlines," reiterated it is America's top-producing automaker, and said it has more U.S. hourly employees than any other carmaker.
This clash lands amid a stretch of tense back-and-forth between the U.S. auto sector and the Trump administration, with shifting trade and federal rules creating uncertainty. Duffy's critique focused partly on Ford's licensing deal to use CATL's battery technologies, including lithium iron phosphate cells. That agreement, first announced in 2023, is drawing fresh attention as U.S.-China frictions rise and as Ford plans to apply the tech in energy storage systems. Farley also appeared at a Ford battery lab in suburban Detroit on Feb. 13, 2023, announcing a $3.5 billion Michigan plant to produce lithium iron phosphate batteries.
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Policy flare ups can change timelines and costs for EVs and batteries, which can show up in sticker prices and the economics of home and grid storage. Duffy urged Farley to "reflect on these concerns and national necessities and adopt reasonable strategies that prioritize American workers, utilize allied supply chains, and promote the self-reliance and integrity of the domestic automotive industry." If Ford adjusts suppliers or plans, it could ripple through where battery tech gets built, how fast it scales, and what consumers ultimately pay. Keeping tabs on how this unfolds helps you gauge the pace and price of the transition you see in your driveway and your utility bill.
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