US Officials Blast Ford Over CATL, Geely and BYD Ties — Company Calls the Accusations a Headline Grab

The administration of Donald Trump has turned up the pressure on Ford Motor Company’s leadership over the automaker’s strategic partnerships with Chinese companies. US Transportation Secretary Sean Duffy sent the company’s board of directors a letter demanding an urgent review of its partnership agreements with CATL, Geely and BYD, calling them a threat to national and economic security. Detroit responded by describing the official’s claims as a “misguided attempt to grab headlines.”

Batteries in Michigan and a Joint Assembly Line With Geely in Europe

The department’s main complaint centers on the licensing of Chinese technology for producing lithium iron phosphate (LFP) cells at the new BlueOval Battery Park Michigan plant in Marshall. Duffy noted that CATL appears on a Pentagon list of organizations tied to China’s military sector, and that borrowing Chinese know-how undermines the independence of American industry.

Ford flatly rejects that assessment. The company stresses the legal structure of the arrangement:

• The Marshall plant is 100% owned and operated by Ford;
• The assembly line is staffed exclusively by American workers (about 1,700 jobs created);
• The Chinese side’s involvement is limited to selling a license for the battery’s chemical composition.

The officials’ second target was the Ford-Geely partnership at a plant in Valencia: the American brand took 66% of the joint venture, while the Chinese holding got 34%. The deal is meant to load the idle Spanish plant with production of new models for the EU market starting in 2028. The US Transportation Department argued that Ford is helping a Chinese competitor gain a foothold in Europe.

A Split in the White House and a Technology Dilemma

The conflict has laid bare divisions within the US cabinet. According to Reuters, the White House was publicly praising Ford not long ago for its large-scale local investments, and Commerce Secretary Howard Lutnick personally approved a plan to move assembly of the Lincoln Nautilus crossover from China back to the US by 2030. Now Duffy has called that date “too late.”

Ford CEO Jim Farley called the attacks unexpected, insisting the company has always maintained a constructive dialogue with Washington.

The situation around Ford reflects a deep deadlock in the American auto industry: traditional manufacturers want to shield the domestic market with high tariffs from the expansion of Chinese brands like BYD, yet at the same time they desperately need advanced Chinese batteries and joint production to avoid losing the global race in Europe and Latin America.