Joint House panel puts the screws to Marshall battery plant project
Members of two separate House Oversight subcommittees joined together on Wednesday as representatives continued their interrogation of incentives for battery manufacturing projects across the state.
Up for discussion was the Marshall BlueOval Battery Park. Announced in 2023, the $3.5 billion project was initially expected to create 2,500 jobs, though Republicans have raised alarms about the project due to a licensing agreement between plant-owner Ford and a Chinese battery company.
Earlier this year, Contemporary Amperex Technology Co. Ltd. or CATL – who has agreed to license its battery technology to Ford for production at the facility – was placed on the U.S. Department of Defense's list of 'Chinese military companies' found to be operating directly or indirectly within the U.S. As a result the company is barred from entering contracts with the Department of Defense.
When Virginia Governor Glenn Youngkin rejected Ford's bid to establish the plant in his state due to its ties to CATL, Michigan Gov. Gretchen Whitmer said he made a political determination and emphasized that Michigan would continue to compete for every economic opportunity. She later celebrated when Michigan was selected as the site for the project calling it a 'generational investment.'
While the Michigan Economic Development Corporation was aware of the project's ties to CATL prior to awarding funding to Blue Oval for the project, the Chinese company's involvement was not a secret, the corporation's Chief Operating and Performance Officer Christin Armstrong said.
Armstrong and the corporation's Senior Project Marketing Advisor Josh Hundt each noted China's near-monopoly on battery technology, with Ford aiming to bring that technology to the U.S. to break their control of the electric vehicle market.
However, members of the committees questioned why the automaker hadn't simply partnered with companies from non-hostile nations like Japan or South Korea instead.
Ford did not respond to an emailed request for comment.
While it would greatly benefit the U.S. to develop its own technology to boost America's electric vehicle manufacturing, the Economic Development Corporation views the project as a way for Ford to make its vehicles more competitive, providing it with access to battery technology and employment for American workers, Hundt said.
With U.S. Sen. Elissa Slotkin (D-Holly) introducing legislation to subject vehicles and vehicle parts manufactured in countries of concern like China to a security review, Rep. Luke Meerman (R-Coopersville) asked whether concerns at the national level factored into the economic development corporation's decision making.
Hundt explained that by utilizing CATL's tech, Ford avoids the alternative of importing batteries from China, allowing the automaker to reduce its dependency on China and other foreign manufacturers.
'Our role is to help make sure that we are seeing a disruption of this current Chinese monopoly that, frankly, nobody wants to see,' Hundt said. 'We need to see both the technology and the manufacturing take place here, and this is a way to begin to make that happen.'
Joe Cella, who served as the U.S. Ambassador to Fiji during President Donald Trump's first term, raised further concerns about potential threats from the Chinese government.
'I will preface my remarks by stating that China is on the hunt, and our footing nationally and the states is not commensurate with this threat,' Cella said, referencing three Chinese citizens with ties to the University of Michigan who were arrested for smuggling biological agents into the country.
He pointed to requirements in Chinese law demanding Chinese-based companies, no matter where they are located, to surveil, collect and report as directed.
'In other words, conduct espionage,' Cella said, previously noting that CATL had begun hiring for positions at the Marshall plant through its U.S.-based subsidiary.
Should this deal ever come to fruition in Michigan, it would only be a matter of time until espionage begins, Cella said, noting that Battle Creek Air National Guard Base and Fort Custer are located nearby.
Alongside questions on Ford's deal with CATL, Armstrong and Hundt fielded questions on the specifics of the project following Ford's decision to downsize the effort.
Now expected to deliver 1,700 jobs rather than 2,500, Armstrong said the project is still underway, with plans to wrap construction and start hiring by 2026.
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