Chinese electric car battery maker CATL targeted by US Senator Marco Rubio in bill that would block tax credits
- The bill comes after Ford Motor struck a deal with CATL as part of a plan for a US$3.5 billion battery plant in Michigan
- Legislation introduced by Rubio, the top Republican on the Intelligence Committee, would block tax credits for batteries produced using Chinese technology
US Senator Marco Rubio on Thursday introduced legislation that takes aim at Ford Motor’s deal to use technology from Chinese battery company CATL as part of the automaker’s plan to spend US$3.5 billion to build a battery plant in Michigan.
Rubio, the top Republican on the Intelligence Committee, introduced legislation that would block tax credits for electric vehicle batteries produced using Chinese technology, saying it would “significantly restrict the eligibility of IRA tax credits and prevent Chinese companies from benefiting.”
Ford said in response to Rubio that “making those batteries here at home is much better than continuing to rely exclusively on foreign imports, like other auto companies do. A wholly owned Ford subsidiary alone will build, own and operate this plant. No other entity will get US tax dollars for this project.”
Last month, Rubio asked the Biden administration to review Ford’s deal to use technology from CATL.
Rubio called for an immediate Committee on Foreign Investment in the United States (CFIUS) review of the licensing agreement between Ford and CATL.
Rubio said the deal “will only deepen US reliance on the Chinese Communist Party for battery tech, and is likely designed to make the factory eligible for Inflation Reduction Act (IRA) tax credits.”
CFIUS is a US Treasury-led inter-agency panel that reviews proposed transactions to ensure they do not harm national security.
