What’s new: Two U.S. lawmakers have urged the Department of Defense (DoD) to “immediately” place Chinese battery giant Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ) on a list of companies allegedly aiding China’s military.
While the list doesn’t carry sanctions or other direct penalties, it is expected to restrict access to some defense contracts.
Senator Marco Rubio and Representative John Moolenaar sent a letter to the defense department’s Secretary Lloyd Austin on Wednesday, stating that “U.S. policymakers have a duty to stand in resolute opposition to any effort by America’s adversaries that threatens our national and economic security.”
“By including CATL on the Section 1260H List, the DoD would not only safeguard America’s military infrastructure from exposure to the PLA, it would also send a powerful signal to U.S. companies that are currently weighing partnerships with CATL,” the letter said.
CATL, the world’s largest producer of electric-vehicle (EV) batteries, called the accusations “factually inaccurate” and “completely groundless,” saying that its products “pose no more of a threat to national security than a brick,” Reuters reported.
The background: U.S. lawmakers have put CATL and sometimes its partners in the crosshairs amid growing concerns about the role Chinese companies are playing in domestic EV manufacturing.
Last year, Ford Motor Co.’s battery plant in Michigan, which would use CATL’s technology, encountered resistance from the Republican chairs of two House of Representatives committees, which had forced Ford to stop work on the plant twice before construction resumed in November.
In December, President Joe Biden signed a bill into law that will prevent the defense department from procuring batteries from CATL, BYD Co. Ltd. (002594.SZ) and four other Chinese companies beginning in October 2027.
Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
