According to Reuters, a senior Republican member of the U.S. Congress sent a letter to Tesla Chief Executive Officer (CEO) Musk on the 19th local time, requesting details of Tesla’s relationship with Chinese battery manufacturer CATL. The report claims that the congressman's request for exposure comes amid concerns that U.S. electric vehicle subsidies are flowing to foreign entities, triggering so-called security concerns.
The congressman is Jason Smith, chairman of the U.S. House Ways and Means Committee. According to the report, Smith asked Musk in the letter whether he had signed a contract with CATL or was considering signing a contract. Smith also said the House Ways and Means Committee is concerned that CATL "may be trying to negotiate other deals, such as the one with Ford."
The report mentioned that Republicans in the U.S. Congress have been investigating Ford Motor’s plan to invest $3.5 billion to build a battery factory in Michigan. According to public information, the factory will use CATL technology.
In 2022, the U.S. Congress passed the $430 billion Inflation Reduction Act, which stipulates that future electric vehicles will not be able to receive tax credits if any battery components are manufactured or assembled by a "foreign entity of concern." Reuters went on to say that this so-called "foreign entity of concern" rule aims to get the United States out of China's supply chain. However, the question is, what exactly is a "foreign entity of concern"? So far, no foreign battery supplier has been labeled as such.
The report mentioned that Smith also wrote to Nissan on the 19th, asking for details of its battery suppliers and whether the company's manufacturing plans in the United States "include the production of batteries or battery components for electric vehicles?"
Reuters said Tesla and Nissan did not immediately respond to requests for comment. Smith also wrote to U.S. Treasury Secretary Yellen that day, calling on the latter to immediately issue guidance and "make it clear in the most comprehensive manner possible that taxpayer subsidies cannot flow to foreign entities of concern through any possible structural mechanism."
Ford told Reuters on September 19 that it agreed that "U.S. taxpayer dollars should support American manufacturers, not foreign entities." The company also said regarding its planned battery plant that it is "fully owned and controlled by Ford, a proud American company."
Reports say Ford is awaiting guidance from the U.S. Treasury Department to ensure that the partnership does not violate relevant laws.
On July 21 this year, two U.S. House of Representatives committees said they were investigating Ford Motor Company's partnership with Chinese battery company CATL to assess the "potential risks" of China's participation in key industries.