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Ford's CATL Deal Draws Ire of US Lawmakers

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Following a previous agreement, Ford is expanding its relationship with CATL, a major Chinese battery manufacturer, to establish a new energy storage facility. This move has already triggered criticism from some US lawmakers. They are expressing concern over the growing reliance of American companies on Chinese technology, particularly in strategically important sectors like electric vehicle components.

The original deal allows Ford to use CATL's technology under license. The expanded partnership underscores the critical need for battery supply to support the growing electric vehicle market. Given the intense competition in the EV sector, securing a reliable and cost-effective battery supply chain is an important strategic advantage for automakers.

This situation highlights the complexities of global business relationships, where geopolitical tensions can clash with commercial interests. The Biden administration has taken steps to support domestic battery production, but it may be difficult to completely eliminate reliance on foreign suppliers. The next steps will involve the reaction from the government.