US warns Ford over ties with Chinese firms amid tensions

The US Department of Transportation has formally notified Ford Motor Company that some of its partnerships with Chinese firms present national security and supply‑chain risks. In a letter addressed to CEO Jim Farley and made public on Tuesday, Transportation Secretary Sean Duffy identified collaborations with battery maker CATL and automakers Geely and BYD as problematic amid ongoing tensions between Washington and Beijing.

Duffy singled out multiple projects: technical and operational involvement by CATL at Ford’s Marshall, Michigan facility, which produces lithium‑iron‑phosphate battery cells; Ford’s joint venture with Geely in Spain; and ongoing discussions with BYD about components for hybrid vehicles. The DOT said these arrangements risk embedding foreign technology and expertise into core operations and Western markets.

The department framed the partnerships as more than commercial ties, warning they could undermine US goals for supply‑chain independence. The letter noted that CATL had been placed on a Department of Defense blacklist in January 2025, and described the Geely venture in Spain as giving strategic competitors a foothold in Western markets. DOT officials also argued that planned moves, such as Ford’s intention to shift Lincoln Nautilus production back to the US by 2030, still leave an extended period of dependence on Chinese manufacturing.

The letter appears to have affected investor sentiment: Ford’s stock dropped about 4.2 percent on Tuesday after the communication was released. Ford had not responded to Al Jazeera’s request for comment at the time the story was published.