Yahoo Finance·2026-01-28 18:23Core Viewpoint - The U.S. House committee is examining Ford's strategy to repurpose its battery manufacturing facilities for lithium iron phosphate cells and energy storage systems in collaboration with CATL, raising concerns about licensing agreements and potential partnerships with Chinese companies [1][2][3]. Group 1: Ford's Business Strategy - Ford plans to repurpose its existing battery plants in Kentucky and Michigan to produce energy storage system batteries, with initial capacity expected to be operational within 18 months [4]. - The company announced a significant $19.5 billion writedown and the discontinuation of several electric vehicle models as part of its revised business strategy [4]. - Ford is confident that its expanded production of lithium iron phosphate (LFP) batteries will meet tax credit eligibility requirements, emphasizing the investment in American workers and local economies [5]. Group 2: Regulatory and Partnership Concerns - Representative John Moolenaar has raised questions regarding whether Ford's licensing terms with CATL have been modified in light of new eligibility restrictions under recent legislation [2][3]. - Moolenaar is also inquiring about a potential joint venture between Ford and Chinese automaker BYD, expressing concerns over vulnerabilities in the auto supply chain due to China's actions [6]. Group 3: Investment and Production Plans - Ford announced plans to build a $3 billion battery plant in Michigan, utilizing technology from CATL, with production expected to start this year [7]. - The new factory in Marshall, Michigan, will also manufacture batteries for Ford's upcoming $30,000 midsize electric vehicle truck [7].