EL7.AI
GeopoliticsMediumUpdated•Originally published 8 September 2026•Updated 8 September 2026•
2 min read

Trump Administration Raises National-Security Concerns Over Ford’s CATL, Geely and BYD Ties

Key Facts

1Sean Duffy’s letter covered Ford’s ties with CATL, Geely and BYD, while the unacceptable-dependence description specifically concerned continued Lincoln Nautilus production in China before 2030.
2Ford announced in 2023 a $3.5 billion LFP battery plant with about 35 gigawatt-hours of annual capacity using CATL knowledge and services.
3Ford’s stake in the Geely venture is 66% versus Geely’s 34%, with operations targeted for the first half of 2027 and production in 2028.
4Ford shares, ticker F, closed at $14.62 on September 4, before the September 8 letter, so the figure does not measure the market reaction.

U.S. Transportation Secretary Sean Duffy sent Ford chief executive Jim Farley a letter on September 8 saying the company’s relationships with Chinese entities raised national-security concerns. Reuters reported that Duffy expressed profound concern about Ford’s dealings with CATL, Geely and BYD.

Duffy’s objections covered Ford’s reliance on CATL-licensed battery technology at its Marshall, Michigan, plant, the Geely joint venture in Spain and discussions with BYD over hybrid-vehicle components. These are positions attributed to the secretary, not independent findings that security harm occurred.

The description of the situation as unacceptable applied, according to the retrieved report, to Ford’s decision not to move Lincoln Nautilus production from China to the U.S. before 2030, leaving additional years of dependence on Chinese production. The evidence does not support applying that description to all of Ford’s Chinese technology partnerships.

Ford announced in 2023 that it would invest $3.5 billion in a lithium iron phosphate LFP battery plant with about 35 gigawatt-hours of annual capacity. It said a wholly owned subsidiary would manufacture the cells using technical knowledge and services supplied by CATL, making this a technology-licensing arrangement rather than shared ownership of the plant.

On July 23, 2026, Ford and Geely announced an agreement to establish a manufacturing joint venture at Ford’s Valencia, Spain, plant, with Ford owning 66% and Geely 34%. The venture remains subject to regulatory approvals, with operations targeted for the first half of 2027 and vehicle production scheduled for 2028.

Political scrutiny of Ford’s Chinese relationships predates Duffy’s letter. On January 27, 2026, the chair of the House Select Committee on China requested information about the CATL license, potential tax credits and additional arrangements with Chinese companies such as BYD, setting a February 4, 2026 response deadline.

Ford did not immediately respond to a request for comment, Reuters reported. The retrieved material establishes political and regulatory pressure but not a final order requiring Ford to exit any partnership, so the operational effect depends on subsequent official action and Ford’s response.

The latest internal EL7 price record shows Ford shares, ticker F, closed at $14.62 on September 4, before the September 8 letter, so it cannot measure the market’s reaction to the news. The next developments to watch are Ford’s response and the regulatory-approval process for the Geely venture.