Washington, D.C. – A bipartisan group of U.S. lawmakers is set to encourage Ford Motor and General Motors CEOs to decrease their reliance on Chinese auto parts, with a specific focus on electric vehicle (EV) batteries, according to insider sources briefed on the matter.
Four members of the House of Representatives China Select Committee will embark on a trip to Detroit on Tuesday for meetings with Jim Farley of Ford and Mary Barra of GM, the sources revealed.
Representatives Mike Gallagher and John Moolenaar from the Republican party, along with Democrats Raja Krishnamoorthi and Haley Stevens, have also scheduled meetings with executives from prominent auto suppliers such as BorgWarner, Continental, Bosch, Tenneco, and battery startup Our Next Energy (ONE).
This intensified scrutiny on Chinese auto parts comes shortly after U.S. Secretary of State Antony Blinken’s recent visit to Beijing, which failed to yield significant breakthroughs despite hours of meetings. In response to the upcoming discussions, Ford expressed its alignment with the committee’s objective of bolstering American competitiveness and establishing domestic EV supply chains. The company plans to highlight their initiatives in this area during the meeting.
On the other hand, GM declined to provide any comments regarding the meeting.
Back in April, Congressman Gallagher, who chairs the China committee, voiced concerns over Tesla’s heavy reliance on China after the company announced its intentions to construct a Megapack battery factory in Shanghai.
To reduce reliance on Chinese supply chains in the electric vehicle sector, the $430 billion Inflation Reduction Act (IRA), signed by President Joe Biden in August, imposes new conditions on EV tax credits. The revised tax credit rules limit eligibility to vehicles assembled in North America and establish regulations on battery sourcing.
Ford faced criticism from some lawmakers due to its agreement, announced in February, to utilize technology from Chinese battery company CATL as part of its $3.5 billion investment to build a battery plant in Michigan.
Republican Senator Marco Rubio has called on the Biden administration to deny EV tax credits for batteries manufactured using Chinese technology.
Ford previously defended its decision, stating that producing the batteries domestically is far preferable to relying solely on foreign imports, as done by other automakers.