Chinese electric vehicle manufacturers are rapidly advancing the development of batteries for their products, according to Ford CEO James Farley who has toured battery makers in China. He also said that the Chinese electric vehicles may be an existential threat to the U.S. auto industry. Farley believes that licensing battery technology from China is the key to the U.S. staying competitive in the auto market. Farley told the New York Times that China is years ahead of the U.S. when it comes to making batteries for electric vehicles.
Ford is currently in the production of lithium ion phosphate batteries that rely on the tehcnology from China’s CATL, the largest EV battery manufacturer in the world with a global market share of 34%. The Chinese government has invested heavily in the company. In 2023 CATL received the equivilent of $790 Million in state subsudies. In late 2023, the company revealed production on its Shenxing LFP battery which is nano-crystallized which accelerates ion movement and the response to charging signals.
On 7 January 2025, the US Department of Defense added CATL and Tencent to its list of “Chinese military companies.” This designation does not involve immediate bans, however.
According to the New York Times,China’s lead is particularly wide in batteries. According to the Australian Strategic Policy Institute, 65.5 percent of widely cited technical papers on battery technology come from researchers in China, compared with 12 percent from the United States.
Jeff Newman JD MBA, represents whistleblowers nationwide relating to customs and tariff fraud concerning imported Chinese goods as well as corporate whistleblowers in major claims under the False Claims Act (Qui Tam), and SEC, CFTC and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
