Republican Lawmakers Push to Restrict Chinese Battery Maker CATL 

2024-08-29 | CATL ,Current Affairs ,Global Markets

Today’s News

Two senior Republican lawmakers, Senator Marco Rubio and Representative John Moolenaar, have urged the U.S. Defense Department to add Chinese battery maker CATL (Contemporary Amperex Technology Co) to a restricted list of companies allegedly working with Beijing’s military.  

If included, CATL would be barred from receiving U.S. military contracts, a move that experts say could significantly damage the company’s reputation. 

Republican Senator Rubio and Rep. Moolenaar urge Defense Secretary Austin to add Chinese battery maker CATL to the restricted list. 
Image Source: Inside Climate News
Senator Rubio and Rep. Moolenaar urge Defense Secretary Austin to add Chinese battery maker CATL to the restricted list. 
Image Source: Inside Climate News

In a letter to Defense Secretary Lloyd Austin, Rubio, the vice chair of the Intelligence Committee, and Moolenaar, who chairs the House Select Committee on China, argued that adding CATL to the list would “send a powerful signal to U.S. companies currently weighing partnerships with CATL.” 

CATL defended its position, stating that its products, which have aided millions of Americans during power outages, are passive and “pose no more of a threat to national security than a brick.” The company dismissed the lawmakers’ claims as “factually inaccurate and completely groundless,” insisting it is not controlled by the Chinese government. The Pentagon has not yet commented on the matter. 

The lawmakers also noted that CATL has strong ties to the Chinese Communist Party and its military, arguing that reliance on CATL batteries compromises U.S. national security by increasing dependence on China for energy infrastructure. 

Earlier this year, U.S. utility Duke Energy announced it would phase out CATL’s energy-storage batteries at a Marine Corps base and other projects after pressure from lawmakers. Additionally, Ford Motor’s plan to license CATL technology for a battery plant in Michigan has drawn criticism from Rubio and other lawmakers concerned about national security risks. 

This move follows the Pentagon’s February decision to add more than a dozen Chinese companies to its restricted list, including memory chip maker YMTC, AI firm Megvii, and lidar manufacturer Hesai Technology, in an ongoing effort to prevent U.S. technology from bolstering China’s military capabilities. 

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