Business Maverick: China to scrutinise Ford-CATL EV battery deal to ensure core technology isn’t shared

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China will scrutinise Ford Motor Co’s recent agreement with Contemporary Amperex Technology Co Ltd to ensure the Chinese battery giant’s core technology isn’t handed over to the US carmaker, another sign of geopolitical tensions between the two powers ...

Ford said on Monday the tie-up would see CATL’s lithium iron phosphate, or LFP, battery technology licensed for use in a newWhile Beijing is pleased the deal showcases China’s prowess in the EV battery space, officials are concerned that competitive aspects of CATL’s technology could be given to or accessed by the American carmaker, people familiar with the matter said, asking not to be named discussing Chinese government deliberations.

One of the people said it’s unlikely to result in the tie-up being blocked. Shares in CATL dropped as much as 3.5% on Friday morning, the biggest intraday plunge since late December. Representatives from China’s Ministry of Commerce, the National Development and Reform Commission and the Ministry of Industry and Information Technology didn’t immediately respond to requests for comment Thursday. Representatives for Ningde, Fujian-based CATL also didn’t reply to a request for comment.

Control of key technologies has become a significant front in the standoff between the world’s two biggest economies, with the US moving aggressively to restrict China’s access to chipmaking and other strategic capabilities. President Joe Biden put China’s domination of EV batteries in his sights with his signature climate bill – the Inflation Reduction Act – which means electric cars made with a certain amount of China-linked materials miss out on lucrative consumer tax credits.

 

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