Ford Motor Company calls itself "the most American automaker." Transportation Secretary Sean Duffy sent a letter to CEO Jim Farley on September 8 arguing otherwise.
The letter cited three business decisions that Duffy called deeply alarming. The battery technology license with Contemporary Amperex Technology Co. at BlueOval Battery Park in Marshall, Michigan. The joint venture with Geely Auto at Ford's Valencia plant in Spain. The plan to continue building Lincoln Nautilus SUVs in China until 2030.
"The Company's recent strategic decisions paint a troubling picture of a foundational American brand actively intertwining its future with Chinese state-backed enterprises," Duffy wrote.
Ford shares fell 4.2 percent to $14.00 on September 8.
The Factory
BlueOval Battery Park Michigan is the first lithium-iron phosphate battery plant in the United States wholly owned by an automaker. Ford originally announced a $3.5 billion project with 35 gigawatt-hours of annual capacity and 2,500 jobs. After scaling back in November 2023, the plant operates at approximately 20 gigawatt-hours with more than 1,700 workers.
The chemistry that makes those batteries work comes from CATL, the world's largest battery manufacturer. Ford licenses CATL's lithium-iron phosphate cell chemistry, manufacturing processes, and core production technology. CATL employees helped train the Marshall workforce during production ramp-up. The plant began producing LFP cells in 2026. The first vehicles to use them, an all-new mid-size electric pickup, enter production in 2027.
The List
The Department of Defense added CATL to its list of Chinese military companies in January 2025. The list contains 134 entities total. The designation prohibits the Pentagon from conducting business with any company on it. CATL called the designation "a mistake" and said it has never engaged in military-related activities.
Duffy cited the designation in his letter. His department "remains deeply alarmed" by Ford's reliance on technology from a company the Pentagon considers linked to the Chinese military.
The Response
Ford pushed back within hours. The company called the letter "a wrongheaded attempt to capture headlines at the expense of a company that has done more for American manufacturing than virtually any other in the nation's history." It accused Duffy of factual errors.
"The CATL arrangement is a limited technology-licensing and services agreement, not a joint venture or foreign-owned manufacturing operation," Ford said. "Ford owns the plant, controls the operation and employs the workforce."
The Venture
Duffy also cited Ford's joint venture with Geely Auto, announced in July 2026, at Ford's Valencia plant in Spain. Ford holds 66 percent of the entity. Geely holds 34 percent. The venture plans to produce three Ford-branded multi-energy vehicles and two Geely-branded electric models starting in 2028.
Duffy wrote that the arrangement "helps strategic adversaries secure a vital foothold in Western markets." Ford and Geely described the partnership as securing the future of the Valencia plant and its manufacturing workforce.
The Gap
The letter names three problems and proposes no alternative. The Transportation Department has no regulatory authority to unwind the CATL license or block the Geely venture. Duffy's instrument is public pressure, not enforcement.
Analyst consensus holds at a price target of $15.68, twelve percent above the September 8 close.
BlueOval Battery Park exists because Ford needed lithium-iron phosphate chemistry at commercial scale and found one source capable of providing it. The factory in Marshall will keep making batteries with licensed Chinese technology. The letter Duffy sent cannot change the industrial reality it describes.