The United States Department of Transportation has issued a formal letter to Ford Motor Company expressing serious concerns about the automaker’s ongoing collaborations with Chinese firms. This intervention comes at a time of heightened trade friction between Washington and Beijing, targeting relationships with major entities such as battery manufacturer CATL, as well as automakers Geely and BYD.
Transportation Secretary Sean Duffy addressed the letter to Ford CEO Jim Farley, stating that the carmaker’s engagements with these Chinese partners create national security risks. Although the correspondence was released publicly on Tuesday, it was originally delivered late last week.
Duffy specifically criticized Ford’s partnership with CATL at its Marshall, Michigan, facility, where lithium-iron-phosphate (LFP) battery cells are produced. The letter argued that relying on imported Chinese technical expertise and operational knowledge, even in reduced quantities, undermines policies aimed at ensuring American national security and supply-chain independence.
CATL is already subject to a ban by the US Department of Defense, which was implemented in January 2025 prior to the inauguration of President Donald Trump. Additionally, Duffy objected to Ford’s joint venture with Geely in Spain, asserting that it provides strategic adversaries with a critical entry point into Western markets.
The DOT also scrutinized discussions between Ford and BYD regarding hybrid vehicle components, warning that such cooperation could further entrench subsidized foreign technology within Ford’s primary supply chains. While Ford had announced plans to shift production of the Lincoln Nautilus from China to the United States by 2030, Duffy deemed this timeline insufficient.
According to the letter, the planned transition leaves an unacceptable multi-year period of dependency on Chinese manufacturing.
That Marshall plant is a big deal for local jobs. I hope the US isn’t forcing Ford to pull out before there’s a viable alternative.
CATL banned by DoD and Ford still partnering? Either the DOT doesn’t know what Ford is doing, or Ford is ignoring red flags.
Ford stock dropping already? The market hates uncertainty. Hope they resolve this without hurting shareholders more.
Is national security the real reason, or just protectionism for US automakers? This feels politically motivated.