The Trump administration’s Transportation Secretary Sean Duffy sent a letter to Ford CEO Jim Farley expressing what he characterized as “profound concern” regarding the automaker’s partnerships with Chinese enterprises. Duffy’s correspondence specifically referenced Ford’s ties to battery supplier CATL and what he described as a framework proposed by Farley to facilitate Chinese joint venture operations within the United States. The secretary raised questions about how these arrangements might affect American national automotive manufacturing strength, supply chain vulnerabilities, and reliance on technologies from foreign adversaries.
Ford responded by rejecting the letter’s characterization as a “wrongheaded attempt to capture headlines.” The company emphasized its position as America’s largest-producing automaker and noted its employment of more hourly workers domestically than any competing manufacturer. Ford also disputed what it described as factual errors in the secretary’s correspondence, particularly regarding claims about Farley proposing a joint-venture framework for Chinese automakers entering the U.S. market.
The licensing agreement between Ford and CATL, known formally as Contemporary Amperex Technology Co., permits Ford to utilize battery technologies including lithium iron phosphate battery production. While Ford originally announced this arrangement in 2023, it has attracted increased scrutiny amid escalating U.S.-China tensions and Ford’s stated intention to deploy these battery technologies for energy storage applications.
Duffy’s letter characterized Ford’s strategic choices as troubling, stating that a foundational American brand appeared to be actively aligning its operations with Chinese state-backed entities. He recommended that Farley adopt strategies prioritizing American workers, supply chains from allied nations, and domestic automotive industry self-reliance.
Ford responded by expressing support for the Trump administration’s stated objectives regarding American innovation and manufacturing advancement. The company suggested that had Secretary Duffy initiated direct communication prior to issuing his public letter, Ford would have been prepared to provide additional details concerning its domestic commitments. This exchange represents the latest contentious interaction between the automotive industry and the administration regarding trade policy and regulatory adjustments.
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