WASHINGTON, January 28, 2026, 14:49 (EST)
- House committee chair John Moolenaar asked Ford to explain its CATL licensing as it shifts plants toward LFP cells and grid storage
- Ford says it is confident the batteries qualify for tax credits and frames the move as a U.S. jobs and energy-security play
- A CATL-licensed LFP battery plant planned for Marshall, Michigan is due to start production in 2026
Rep. John Moolenaar, the Republican chair of a U.S. House committee, is pressing Ford for details on its plan to repurpose U.S. battery facilities to make lithium iron phosphate (LFP) cells and grid-scale energy storage systems using technology licensed from China’s CATL. In a letter to CEO Jim Farley released on Wednesday, he said the shift toward batteries for data centers raises “important questions” about whether the licensing terms have changed and asked whether Ford is pursuing a joint venture with China’s BYD. (Reuters)
The scrutiny matters now because Ford is trying to turn battery capacity built for electric vehicles into a business that sells power to the grid and to big energy users. At the same time, Washington is tightening the fine print on which projects can tap federal incentives when Chinese technology or partners are involved.
Ford’s pitch is straightforward: make more batteries at home, and sell them into a fast-growing market that is not limited to cars. Data centers — the warehouses of servers behind AI and cloud computing — are pushing utilities and large customers to add backup power and grid-support hardware.
LFP, short for lithium iron phosphate, is a lithium-ion battery chemistry that automakers and utilities use when cost and durability matter more than maximum driving range. “Grid-scale” storage is basically large battery systems that store electricity for the power grid.
Moolenaar’s letter asks Ford to spell out what changed — if anything — as the company pivots from vehicle batteries toward energy storage and the data-center market. Ford, in a statement, called expanding LFP production in the United States “an investment in energy security,” and said it is confident the batteries meet tax-credit eligibility rules.
The lawmaker also put another China-linked question on the table, asking whether Ford plans a joint venture with BYD. Moolenaar warned China has shown it can “weaponize the auto supply chain,” and said deeper ties could widen a vulnerability for U.S. manufacturers.
Ford’s battery push comes as it reworks its wider EV plans. The automaker disclosed a $19.5 billion writedown in December and said it was dropping several electric-vehicle models, then said it would bring new battery capacity online within about 18 months at plants in Kentucky and Michigan.
Ford is also building a CATL-licensed LFP battery plant in Marshall, Michigan, announced in 2023 and expected to start production in 2026. The factory is slated to make cells for Ford’s planned midsize electric truck, which the company has pegged at about $30,000.
Ford on Tuesday named longtime executive Lisa Drake as president of its new energy storage unit, Ford Energy, as it tries to turn battery know-how into sales outside the auto market. Vice chair John Lawler said Drake’s leadership is “essential” as the company moves to meet rising demand for battery storage, while Drake said the unit will “maximize the value” of Ford’s battery manufacturing capabilities. (Ford From the Road)
The Financial Times reported Ford’s widening use of CATL technology has angered some U.S. lawmakers, with Moolenaar and others pressing the company on how much control or economics remain with the Chinese supplier under the licensing structure. (Financial Times)
But the next turn depends on how far Congress pushes and how federal rules are applied to licensing deals that involve Chinese technology. If policymakers decide the arrangement trips restrictions tied to tax credits, Ford could face higher costs, slower rollouts, or a narrower set of customers.
For now, the fight sits in a familiar place: Ford says it is building in the United States and protecting eligibility for incentives, while lawmakers keep testing where “licensed technology” ends and reliance on China begins.
