DoD Says Ford EV Partner CATL Aids China’s Military

Chinese battery maker CATL has been under fire from U.S. lawmakers over accusations that it works with that country’s military for some time now, which has raised concerns pertaining to potential national security risks. CATL continues to deny these accusations, and will license lithium-iron phosphate battery technology to Ford so that it can build LFP units at its under-construction BlueOval Battery Park Michigan site, and it may also wind up building some of its own plants in the U.S. as well. However, the U.S. Department of Defense has now taken additional action against CATL and some other China-based companies suspected of working with the country’s military, adding more fuel to this particular fire.

According to Reuters, the DoD has officially added CATL to its list of companies that it says work with China’s military via what’s formally known as the “Section 1260H list” – along with the tech company Tencent Holdings and a total of 134 organizations. Such a move doesn’t ban those companies’ products from being sold in the U.S., but it does cast a negative light on the reputation of each, serving as a bit of a warning to any U.S.-based company that does business with either as well, not to mention placing a bit of pressure on the U.S. Treasury Department to sanction both.

Both companies have denied these allegations, and the Chinese foreign ministry has said that it is urging the U.S. to immediately lift its “illegal unilateral sanctions” against China-based enterprises, adding that the country would move to safeguard the legitimate rights and interests of its companies.

“We became aware that the U.S. Department of Defense had designated CATL as a ‘Chinese Military Company’ on January 7^th, 2025,” CATL said in a statement. “CATL has never engaged in any military-related business or activities, so this designation by the Department of Defense is a mistake. 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.”