Ford's $F (+0,01%) decision to expand its collaboration with CATL $3750 (+3,12%) in the manufacture of energy storage batteries has caused dissatisfaction among members of the US Congress, according to a report in the Financial Times.
Under the license agreement between Ford and CATL, Ford will use CATL's technology in a wholly owned $3.5 billion plant in exchange for substantial federal manufacturing tax credits.
John Moolenaar, Chairman of the U.S. House of Representatives Select Committee on China, sent a letter to Ford CEO Jim Farley requesting an explanation of the nature of the close relationship between Ford and CATL. Moolenaar also asked for clarification on the original terms of the license agreement and whether the agreement gives CATL rights to influence production, retain technological control or receive royalties based on production volume.
