Ford CEO warns America about Chinese cars while Ford uses Chinese battery technology

Ford warns about Chinese cars

Ford CEO Jim Farley warned that the United States should be cautious about allowing Chinese automakers into the American market. At a September 29 Automotive News conference, he pointed to Europe.

Farley said it was “too late” for European countries. China is expected to export 12 million vehicles in 2026. That compares with about 3 million vehicles exported in 2022.

Ford licenses lithium iron phosphate battery technology from China’s CATL. The technology is being used for battery production at Ford’s Michigan facility.

U.S. barriers limit Chinese cars

Chinese automakers already face substantial barriers to entering the U.S. vehicle market. Chinese electric vehicles are subject to tariffs exceeding 100%, raising their cost before reaching American buyers.

Federal connected vehicle rules create another obstacle. They restrict certain Chinese-linked software and hardware because the Commerce Department has identified national security risks associated with connected vehicle technology.

Automakers are also pressing Congress for longer-lasting restrictions. Federal lawmakers are considering measures that would make some existing limits more difficult to reverse.

Connected car rules add barriers

The federal connected vehicle rule adds restrictions beyond tariffs. The Commerce Department rule took effect on March 17, 2025, targeting certain vehicle technology connected to China or Russia.

Starting with the 2027 model year, covered software is subject to U.S. import and sales restrictions. Restrictions involving covered vehicle connectivity hardware generally begin with model year 2030 vehicles.

The rule applies to connected vehicles weighing less than 10,001 pounds. It creates another federal barrier for Chinese automakers seeking access to American buyers.

Ford licenses technology from CATL

Ford’s relationship with CATL works differently from importing Chinese-branded vehicles. BlueOval Battery Park in Marshall, Michigan, is owned by Ford. Ford also controls the plant’s operations.

CATL participates through a technology licensing and services agreement. Ford uses CATL’s knowledge to manufacture lithium-iron phosphate battery cells at the Michigan facility.

Ford employs the workers who produce those cells. CATL provides technical knowledge while Ford remains responsible for operating the American battery factory.

Michigan begins making LFP cells

Ford reported on June 17 that more than 500 employees had joined BlueOval Battery Park, Michigan. The Marshall facility was moving toward commercial battery production.

Ford planned to reach 800 workers by the end of 2026. The company continued working toward a longer-term goal of about 1,700 jobs at the facility.

Employees were already assembling full lithium iron phosphate prismatic cells. Ford said the Michigan plant remained on track to ship electric-vehicle batteries in 2026.

Fathom will use Michigan batteries

The Michigan battery cells are intended for a specific Ford vehicle. The Ford Fathom is a midsize electric pickup and the first model based on Ford’s Universal EV Platform.

Ford announced the Fathom name on August 6, 2026. The standard range version starts at $28,350 before taxes, title, registration, and fees.

Preorders are scheduled for early 2027. Every Fathom will contain hardware for Ford’s next-generation BlueCruise system. The electric pickup will also support bidirectional power.

Louisville prepares for Fathom

Ford is transforming the Louisville Assembly Plant in Kentucky for its Universal EV Production System. The factory is scheduled to build the upcoming Fathom electric pickup.

Ford expects to build prototype Fathom units using production-qualified parts during the first quarter of 2027. Customer vehicles are scheduled to follow later that year.

The new production system uses three assembly branches. Ford says its Universal EV Platform requires 20% fewer parts than a typical vehicle. Louisville underwent a $2 billion overhaul.

Ford also works with Geely

Ford’s relationships in China extend beyond CATL. On July 23, 2026, Ford and Geely Auto announced an agreement to create a manufacturing joint venture at Ford’s Valencia plant in Spain.

Under the proposed structure, Ford would hold 66% of the venture. Chinese automaker Geely would own 34%. The agreement remains subject to regulatory approvals.

The plant is expected to manufacture vehicles for European customers. Ford says five new passenger vehicles are planned for European showrooms by 2029.

Washington questions Ford strategy

On September 8, Transportation Secretary Sean Duffy sent Ford CEO Jim Farley a letter criticizing the automaker’s relationships with Chinese companies.

Duffy raised concerns about Ford’s dealings with CATL, Geely, and BYD. He wrote that companies need to “chart clear paths to technological self-reliance.”

Ford responded by pointing to its American factories and workers. The company also highlighted battery production taking place at its Michigan facility.

Nautilus shows Ford China link

The Lincoln Nautilus sold to American customers is assembled in China. Its connected vehicle software is developed in the United States but installed in China.

Ford initially sought federal authorization because of the software arrangement. By August 2026, Ford said the Nautilus could continue U.S. sales without authorization from the Commerce Department.

The imported Nautilus faces a 52.5% U.S. tariff. Ford plans to increase domestic Lincoln production and phase out China-sourced U.S. imports beginning in 2030.

Congress considers another barrier

Congress is considering legislation that would put restrictions on Chinese-connected vehicles into federal law. Senators Bernie Moreno and Elissa Slotkin are leading the bipartisan Senate effort.

The Connected Vehicle Security Act cleared the Senate Commerce Committee in July. The proposal includes restrictions affecting companies with significant Chinese ownership, including a 15% ownership threshold that has drawn questions about its potential effect on some non-Chinese automakers.

The House companion measure has more than 100 cosponsors. However, efforts to move the Senate bill before the 2026 midterm elections stalled, and lawmakers are expected to revisit the proposal after the election.

Ford points to U.S. production

On August 12, Ford announced plans to increase Lincoln production in the United States beginning in 2030. The move would reduce Lincoln’s reliance on vehicles imported from China.

Ford said it assembled more than 2 million vehicles in America during 2025. The automaker reported approximately 56,300 hourly manufacturing employees across its U.S. operations.

Lincoln builds the Navigator at the Kentucky Truck Plant. The Aviator is produced at the Chicago Assembly Plant. Both vehicles are already assembled in the United States.

Ford CEO Jim Farley says the teardown of Tesla vehicles revealed design lessons that reshaped Ford’s EV strategy, and that Ford is also studying rival EV designs to improve its future products.

Ford shifts some production home

Ford plans to move production of some Lincoln models from China to the United States beginning in 2030. Farley described the decision as difficult but necessary.

The move comes as Ford continues to use CATL-licensed battery technology in Michigan. Ford workers manufacture those lithium iron phosphate cells at the Marshall facility.

Ford is reducing its reliance on Chinese vehicle production while retaining selected Chinese technology. Its battery and Lincoln plans illustrate how the two approaches operate independently.

Jim Farley outlines his views on Chinese carmakers in the U.S. market, showing how Ford’s leadership is balancing competitive concerns with the selective use of Chinese technology.

Does Ford’s use of Chinese battery technology change how you view its warnings about Chinese cars? Share your views in the comments.

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This slideshow was made with AI assistance and human editing.