The Republican chair of a U.S. House committee has opened an inquiry into Ford Motor Co.'s plans to convert existing U.S. battery manufacturing capacity to produce lithium iron phosphate (LFP) cells and grid-scale energy storage systems under a licensing arrangement with China’s Contemporary Amperex Technology Co. Limited (CATL).
In a letter addressed to Ford Chief Executive Jim Farley, Representative John Moolenaar raised concerns about the revised direction of the automaker’s battery strategy. He asked whether the original licensing agreement with CATL has been modified in any way to support Ford’s new emphasis on energy storage systems and data center markets.
"Ford’s revised business plan raises important questions about whether the original licensing terms have been updated, expanded, or otherwise altered to accommodate the company’s new focus on energy storage systems and data center markets," Moolenaar wrote.
The congressman has requested that Ford provide responses to a series of questions about its arrangement with CATL. The scope of the inquiry centers on the company’s decision to repurpose U.S.-based battery manufacturing facilities for the production of these specialized battery cells intended for both grid-scale storage and related applications.
The letter seeks clarity on the terms and possible changes related to the technology license and how those terms align with Ford’s updated manufacturing plans. The inquiry is specifically aimed at the contractual relationship with the foreign licensor and the conversion of domestic manufacturing capacity for the new cell chemistry and storage system production.
Beyond the questions posed in the letter, the materials provided to Ford and the exact content of the requested responses have not been disclosed in the inquiry note. The focus, as stated by the committee chair, remains on licensing details and the use of U.S. production assets to manufacture the LFP cells and grid-scale storage products under the CATL-licensed technology.
Summary: A Republican House committee chair has asked Ford for detailed information about its licensing deal with China’s CATL after Ford said it would repurpose U.S. battery plants to make LFP cells and grid-scale energy storage systems. The lawmaker’s letter questions whether the original licensing terms were altered to enable Ford’s new market focus.