In its quest to vastly expand EV production in the coming years, Ford has secured deals with a number of suppliers from all around the globe, including Chinese battery maker CATL, which will supply The Blue Oval with its lithium-iron phosphate battery tech for the new BlueOval Battery Park Michigan complex, where it will build those batteries for future Ford EV models. However, that new facility – which was originally planned for Mexico before winding up in the U.S. – has also been the subject of much controversy, prompting certain U.S. politicians and the Chinese government to call for a review of the deal. Now, Chinese President Xi Jinping has reportedly told CATL that he has “mixed feelings” about its status as the world’s largest battery maker as well, according to Reuters.
Following a presentation by CATL Chairman Zeng Yuqun outlining how the company current commands 37 percent of the total EV battery market across the globe, Jinping noted that he is “both happy and worried” about that particular statistic during a closed-door meeting with members of parliament.
“Emerging industries must do a good job in planning, figuring out how big the market is and where the risks are,” Jinping said. “They should avoid marching ahead alone in an invincible fashion, only to be caught out by others and fail in the end.”
These comments could be potentially troubling not only for CATL, but also Ford, as China has tightened its control over the country’s largest companies in recent years, regulating everything from data security to financing and how each conducts business in other markets. While some U.S. politicians have expressed concerns over CATL’s involvement with the new Ford EV battery plant, China is also worried that crucial pieces of technology will ultimately wind up in competitor’s hands, though Dong Yang, an official from China EV100, recently noted that “the benefits of the collaboration far outweighed the risks of technology being leaked.”
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Comments
Translating this into reality, if Xi said he has “mixed feelings” that means it is a dead deal.
More likely he’ll turn it into a bargaining chip.
– Western companies are now awaking to the harsh realities of Xi Jinping’s totalitarian regime.
– After decades of transferring production to China, there will be a lot of work required to move production to more secure jurisdictions.
– Plus, these moves have to be made without ruffling too many authoritarian feathers.
It is laughable that Xi would insert himself into this conversation as knowing better than Chinese companies do regarding product development and sales.
I suspect his comments are purely political designed to ‘push back’ against any Government than might have the temerity to challenge Chinese hegemony.
I still find great appeal in Canada’s Deputy Prime Minister case to the world to look to ‘friend shoring’.
Reliable, trustworthy global partners are essential.
Unfortunately western business interests and Ford in particular are slow to do this placing their futures in the hands of a questionable country.
By example, Germany is learning the hard way with its reliance on Russian gas.
U.S. arrogance could be similarly humbled without a more balanced trade relationship that is reciprocal and trustworthy.
Talk about the pot calling the kettle black.
“China is also worried that crucial pieces of technology will ultimately wind up in competitor’s hands,”
This from the country that bought up US Battery makers a decade ago, packed up production, technology, and shipped it all to China and closed the US companies down. What they couldn’t buy, they just stole outright.
And now they worry that someone might get a piece of it back???
That’s pure hubris.
Can’t blame them for buying what we were so foolish as to sell. A long look in the mirror on that is necessary.
As to China stealing IP that’s a very legitimate target for criticism.
ford should get out of china im thinking of not getting the hybrid maverick we ordered ,, only been 17 months !!!!!!!!!!!!!!! said to be built in april