WASHINGTON, January 28, 2026, 14:49 (EST)
- House committee chair John Moolenaar pressed Ford for details on its CATL licensing amid the company’s move to LFP cells and grid storage projects
- Ford insists its batteries meet the criteria for tax credits, pitching the move as a boost to U.S. jobs and energy security
- A CATL-licensed LFP battery factory in Marshall, Michigan, is set to begin production in 2026
Rep. John Moolenaar, the GOP chair of a House committee, is demanding clarity from Ford on its move to turn U.S. battery plants toward producing lithium iron phosphate (LFP) cells and grid-scale energy storage tech licensed from China’s CATL. In a letter to CEO Jim Farley released Wednesday, Moolenaar flagged “important questions” about any changes to the licensing terms tied to the data center battery shift and probed whether Ford is planning a joint venture with China’s BYD. Reuters
This scrutiny comes as Ford aims to repurpose EV battery capacity into a business supplying power to the grid and large energy consumers. Meanwhile, Washington is tightening rules on which projects qualify for federal incentives if they involve Chinese technology or partners.
Ford’s message is clear: ramp up domestic battery production and tap into a booming market that stretches beyond just vehicles. Data centers—the sprawling server hubs powering AI and cloud computing—are driving utilities and major clients to boost backup power and grid-support systems.
LFP, or lithium iron phosphate, is a type of lithium-ion battery chemistry favored by automakers and utilities when cost and longevity take priority over peak driving range. “Grid-scale” storage refers to massive battery setups designed to store electricity for the power grid.
Moolenaar’s letter presses Ford to clarify what, if anything, has shifted as the company moves from vehicle batteries to energy storage and data-center applications. Ford responded by calling the expansion of LFP production in the U.S. “an investment in energy security,” adding they’re confident the batteries qualify for tax credits.
The lawmaker also raised another China-related question, asking if Ford intends to form a joint venture with BYD. Moolenaar cautioned that China has demonstrated its ability to “weaponize the auto supply chain,” suggesting that closer ties might increase risks for U.S. manufacturers.
Ford is revamping its broader EV strategy alongside a major battery investment. In December, the company revealed a $19.5 billion writedown and announced it was scrapping several electric-vehicle models. Now, Ford plans to launch new battery production capacity within roughly 18 months at facilities in Kentucky and Michigan.
Ford is setting up a CATL-licensed LFP battery plant in Marshall, Michigan. Announced in 2023, production is expected to kick off by 2026. This facility will supply cells for Ford’s upcoming midsize electric truck, priced around $30,000.
On Tuesday, Ford appointed longtime executive Lisa Drake as president of its new energy storage division, Ford Energy, aiming to capitalize on battery technology beyond cars. Vice Chair John Lawler called Drake’s leadership “essential” to addressing the growing demand for battery storage. Drake added that the unit will focus on “maximizing the value” of Ford’s battery manufacturing strengths. Ford From the Road
The Financial Times revealed that Ford’s expanded reliance on CATL technology has sparked frustration among some U.S. lawmakers. Moolenaar and colleagues are questioning how much control or financial benefit the Chinese supplier retains under the current licensing setup.
The next move hinges on how aggressively Congress acts and how federal rules are enforced on licensing deals involving Chinese technology. Should policymakers determine the deal violates tax credit restrictions, Ford might encounter increased expenses, delayed launches, or a smaller customer base.
For now, the battle stays where it’s always been: Ford insists it’s manufacturing in the U.S. and securing incentives, while lawmakers probe the boundary between “licensed technology” and dependence on China.
