CATL

2023 - 3 - 8

Post cover
Image courtesy of "Council on Foreign Relations"

Ford-CATL Partnership Illustrates the Challenge of Decoupling EV ... (Council on Foreign Relations)

Ford Motor Company's partnership with a Chinese battery manufacturer encapsulates the difficulty of the United States to balance private sector interests ...

China itself has called for [additional scrutiny](https://www.bloomberg.com/news/articles/2023-02-16/china-to-scrutinize-ford-f-us-catl-battery-deal-to-ensure-key-tech-not-shared) of the deal, stemming from concerns that Ford might be able to gain access to sensitive technologies as a result of the partnership. [substantial leads](https://foreignpolicy.com/2023/01/25/battery-energy-transition-geopolitics-china-electric-vehicles/) in material processing and refining, cell component and battery manufacturing, and EV production. [cheaper and easier to produce](https://www.cummins.com/news/2022/09/30/5-fast-facts-know-about-lfp-batteries) than the nickel cobalt aluminum (NCA) and nickel manganese cobalt (NMC) batteries commonly used in the United States and Europe. [New data](https://www.politico.com/news/2023/02/07/trade-china-relations-economies-00081301) released in February by the U.S. There are growing signs, however, that proponents of decoupling are turning their attention to these supply chains and are especially worried that China has developed asymmetric advantages to dominate the marketplace. [6.8 million](http://en.caam.org.cn/Index/show/catid/60/id/1902.html) alternative energy vehicles were sold in China compared to roughly 800,000 sold in the United States. automakers to transition to the technology, and LFP batteries are projected to seize a [majority market share](https://www.technologyreview.com/2023/02/17/1068814/meet-the-new-batteries-unlocking-cheaper-electric-vehicles/) in coming years. In addition to its grip on LFP technology, Chinaโ€™s command over other components of the EV supply chain is another challenge to U.S. [announced](https://media.ford.com/content/fordmedia/fna/us/en/news/2023/02/13/ford-taps-michigan-for-new-lfp-battery-plant--new-battery-chemis.html) in February a plan to cooperate with Chinese battery manufacturer Contemporary Amperex Technology Co. Ford will control a 100 -percent ownership stake in the plant and license the lithium ferrous phosphate (LFP) battery technology from CATL. EV technology would also seem to be somewhat unique in the U.S.-China technology cold war. (CATL) to build an electric vehicle (EV) battery factory in Michigan.

Explore the last week