Ford's Battery Plans at Risk With CATL Security Listing

Automotive battery giant CATL is under fire again by U.S. authorities, this time being placed on a list warning American organizations that it may pose a national security risk.

The Chinese battery maker is already under investigation for allegedly using forced labor in its production supply chain, an allegation the company tells WardsAuto it vehemently denies.

Now the world’s largest auto battery cell manufacturer has been added to the U.S.’s list of companies claimed to be working with China's military, the BBC reports.

Being added to the Department of Defense's (DoD) list does not mean an immediate ban to trading with them; the move, however, is often seen as the first step toward a U.S. Treasury Department sanction.

The threat to trading with CATL places pressure on Ford’s plans to invest $2 billion into a battery plant in Michigan where it hopes to use technology under license from CATL.

CATL tells the BBC that its inclusion is “a mistake” while adding it “is not engaged in any military related activities.” DoD’s list of Chinese military companies, which is formally known as the Section 1260H list, is updated annually and now includes 134 firms.

In a company statement, it adds: “It does not restrict CATL from conducting business with entities other than DoD and is expected to have no substantially adverse impact on our business. We will proactively engage with DoD to address the false designation, including legal action if necessary, to protect the interests of our company and shareholders as a whole.”

At the time of publication, Ford had yet to respond to a request by WardsAuto for comment on the issue.