Ford: Duffy criticism over deals with China ‘wrongheaded attempt to capture headlines’

Ford Rejects Duffy’s Criticism of China Battery Technology

Provpnadvice.com – Ford has rejected Transportation Secretary Sean Duffy’s criticism of its ties to Chinese battery technology, calling the allegations a “wrongheaded attempt to capture headlines.” The automaker said the secretary’s letter mischaracterized its agreements and overlooked its broader commitment to U.S. manufacturing.

The dispute began after Duffy wrote to Ford Chief Executive Jim Farley, expressing concern about the company’s relationship with Amperex Technology Co., a Chinese battery manufacturer. The secretary urged the company to prioritize domestic supply chains, American workers and long-term technological independence.

“When a company intentionally chooses to deepen operational dependencies on strategic competitors, it fails to act as the reliable partner the American public and this DOT require,” Duffy wrote.

Automaker Cites Its U.S. Production Footprint

In response, a spokesperson said the company’s American manufacturing operations remain central to its strategy. The automaker said it produces more vehicles in the United States, employs more hourly manufacturing workers and exports more U.S.-built vehicles than any other automaker.

“Ford is the most American automaker,” the spokesperson said. “We produce more vehicles in the U.S., employ more hourly manufacturing workers and export more vehicles from the U.S. than any other automaker.”

The company also contrasted its position with competitors that rely on vehicles produced in Japan, Mexico and South Korea. It argued that its own investments are directed toward American production, jobs and innovation.

Battery technology has become an increasingly sensitive issue for the U.S. auto industry as electric vehicles and their supply chains expand. Although battery systems are essential to electric transportation, many components, materials and technical capabilities remain connected to international suppliers.

Dispute Centers on Battery Technology Agreement

Duffy focused on the company’s relationship with Amperex Technology Co., which is on a Defense Department list of banned companies. He described the arrangement as a potential source of dependence on technology associated with a strategic competitor.

The automaker disputed that interpretation, saying the agreement is limited to technology licensing and services. It said the relationship is not a joint venture and does not involve a foreign-owned manufacturing operation.

“Ford’s ties to Amperex” are a “limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation,” the spokesperson said.

The distinction is important because a licensing arrangement gives a company access to technology or support without creating shared ownership of a business or placing a U.S. factory under foreign control. The company said Duffy’s letter failed to reflect that difference.

Duffy nevertheless argued that major U.S. corporations should protect the country’s industrial resilience and reduce potential exposure to strategic competitors. He said the domestic auto sector should have a clearer path toward technological self-reliance.

“Iconic American companies, like Ford, are also expected to out-innovate competitors,” Duffy wrote. “To that end, they need to chart clear paths to technological self-reliance.”

Questions About the Dispute

What is the main disagreement?

The disagreement concerns whether a limited battery technology licensing and services agreement creates an unacceptable dependency on China-linked technology. Duffy argued that the arrangement raises national and industrial-security concerns, while the automaker said that description is inaccurate.

Does the agreement involve foreign ownership of a U.S. factory?

According to the company’s spokesperson, no. The arrangement was described as a technology-licensing and services agreement rather than a joint venture or foreign-owned manufacturing operation.

Why does battery technology matter to U.S. drivers?

Battery technology affects the development, cost and supply of electric vehicles. The debate reflects a wider U.S. concern about whether automakers can expand electric-vehicle production while strengthening domestic manufacturing and reducing reliance on overseas supply chains.