Ford Motor Co. is pushing back against pressure from the Trump administration to sever ties with Chinese partners, with CEO Jim Farley calling the criticism "basic misunderstandings, untrue lies" during a September 9 interview with the Wall Street Journal. The dispute centers on Ford's battery technology licensing with CATL, European cooperation with Geely, and talks with BYD over hybrid components.
US Transportation Secretary Sean Duffy wrote to Farley on September 3, urging Ford to cut ties with CATL, Geely, and BYD, arguing that the company is overexposing its future to Chinese firms. In response, Farley defended the partnerships, saying a five-minute phone call could clarify the situation. He emphasized that Ford's collaboration with CATL does not cede control of the company's future.
Kentucky investment and battery plans
On September 10, Ford announced an additional $1 billion (about 6.7 billion yuan) investment in Kentucky to build a new paint shop, expected to break ground later this year. The facility currently produces Super Duty pickups, Ford Expedition, and Lincoln Navigator SUVs. Ford said existing Kentucky investments include $2 billion (about 13.5 billion yuan) for converting the Louisville assembly plant to build the new Fathom electric pickup, and another $2 billion for a battery plant in Glendale. Ford employs about 11,500 people in the state, with an economic impact of $33 billion (about 222 billion yuan).
The core of the dispute is Ford's BlueOval Battery Park Michigan plant in Marshall, where Ford plans to produce lithium iron phosphate (LFP) batteries using CATL's licensed technology. The plant, owned and operated by Ford with American workers, is set to start shipping batteries in 2026 for entry-level electric pickups. Duffy argues that even with US-based production, reliance on Chinese technology and operational expertise violates national security and supply chain independence policies. Farley countered that the Michigan plant represents billions in investment and will create about 1,700 US jobs.
Beyond CATL, Duffy criticized Ford's cooperation with Geely in Europe, which involves Geely using Ford's Valencia plant in Spain to produce new energy vehicles for the European market starting in 2027, with brand models expected in 2028. Ford also faces political pressure from Republican Senator Rick Scott and House China Select Committee Chairman John Moolenaar.
Tariffs and the Fathom pickup
Last month, Ford announced it would move production of some Lincoln models from China to the US starting in 2030, specifically the Lincoln Nautilus, currently the only Ford vehicle imported from China. The Nautilus is built at a Changan Ford joint venture plant in Hangzhou, and imports face a 52.5% tariff. Commerce Secretary Howard Lutnick has supported the move, but Duffy believes progress is too slow, highlighting internal administration divisions.
On the product front, Ford is preparing the Fathom, a mid-size electric pickup with a starting price of $28,350 (about 191,000 yuan), excluding destination fees. The truck will feature LFP batteries, NACS charging, and bidirectional charging, with seating for five and cargo space exceeding that of a Toyota RAV4. It will include hardware for Ford's next-generation BlueCruise driver assistance system, targeting a price under $30,000. Production is expected to start in 2027, competing with the Slate electric pickup backed by Amazon founder Jeff Bezos, which starts under $25,000.
Ford also plans to end production of the current F-150 Lightning in late 2026, but will introduce a next-generation extended-range electric version combining battery and gasoline generator for a combined range of over 700 miles (about 1,127 km). The company's strategy reflects a balancing act between US political pressures and the need for cost-effective technology from Chinese partners, according to IT之家.
Based on reporting by IT之家. Edited and published in English by geisou.
