Ford recently inked a deal for a $3.5 billion lithium-ion phosphate (LFP) battery plant in Michigan that will utilize Chinese technology.
Ford's deal with CATL is being closely watched by Chinese leaders. CATL, unlike other Chinese companies, is not owned by the government.
The Chinese government is concerned this deal could set a precedent that would enable additional non-government-owned companies to strike major deals with American corporations.
Florida Senator Rubio and Virginia Governor Youngkin opposed the deal due to potential implications. Michigan's governor, however, embraced the deal with open arms.
Senior Chinese officials are currently observing the agreement between Ford and CATL, but will this analysis come to an end?
Ford has already responded to the ambiguity of the deal's pros and cons. It has assured both the US and Chinese governments this is strictly business and no politics are involved.
In the worst-case scenario, what would happen if the Ford-CATL deal ended in failure? Neither side wants that to happen but political forces may attempt to sway things otherwise.