Grand Rapids Reporter

Michael Dunne, CEO of Dunne Insights, expressed concerns about Ford's reliance on CATL’s licensed battery technology, questioning its implications for U.S. taxpayers. This statement was made on the social media platform X.

"This was probably not the smartest strategy in the first place," said Dunne. "Ford would have depended on CATL for battery technology via licensing arrangement. That would be good for CATL. Questionable for US tax payers."

According to Reuters, in May 2025, Ford Motor Company confirmed that its $3 billion lithium-iron phosphate (LFP) battery plant in Marshall, Michigan, would proceed as planned. The plant will utilize technology licensed from China’s Contemporary Amperex Technology Co., Limited (CATL). Currently around 60% complete and expected to employ 1,700 workers, the facility relies on royalty payments to CATL for its battery chemistry. A tax-reform bill passed by the House of Representatives threatens to revoke production tax credits for projects using Chinese technology due to newly added "foreign entity of concern" provisions.

Reuters reports that Ford’s licensing agreement with CATL involves royalty fees tied to each battery produced. This arrangement allows Ford to claim domestic manufacturing for tax-credit eligibility. In 2025, lawmakers introduced the "Protecting American Auto Innovation Act" along with related tax-reform measures aimed at expanding restrictions under the Inflation Reduction Act. These measures seek to include licensed foreign intellectual property in disqualifying projects from federal credits.

The International Energy Agency notes that China currently produces over 75 percent of global lithium-ion battery cells and handles a majority of refining for lithium, cobalt, and graphite. CATL holds approximately a 37–38 percent market share globally and has increasingly adopted licensing models like the one with Ford to spread its technological influence without direct ownership overseas. U.S. policymakers began scrutinizing these licensing arrangements in 2024–2025 due to concerns over strategic dependencies and supply-chain resilience.

Dunne is the founder and CEO of Dunne Insights, established in 2018 to advise on global electric and autonomous vehicle markets. He previously founded Car Keys Asia in 2011 and Automotive Resources Asia in 1993 and authored "American Wheels, Chinese Roads." A University of Michigan graduate with an MA in Chinese History and an MBA, Dunne speaks multiple languages including Chinese and hosts "The Driving With Dunne Podcast." He is also working on a forthcoming book about China's expansion into global electric vehicle (EV) and battery sectors.