Washington Pressures Ford to Sever CATL Ties Over Chinese Battery Deal

U.S. Transportation Secretary Sean Duffy has publicly urged Ford to walk away from its partnership with Chinese battery supplier CATL, framing the arrangement as a national security concern. The message from Washington was blunt: cut the cord, or face unspecified consequences.

Ford, however, appears to be pointing back at the fine print of the agreement. The company’s position suggests the relationship is structured in a way that may not be as simple to unwind as critics assume, leaving the automaker caught between political pressure and its own contractual and technical realities.

The standoff highlights the growing tension between U.S. policymakers eager to decouple the auto industry from Chinese supply chains and manufacturers racing to build affordable electric vehicles using the most cost-effective battery technology available. How Ford navigates this squeeze could set a precedent for other automakers facing similar scrutiny.