Lawmakers Call for Adding EV Battery Firm to DOD’s List of Chinese Military Companies

House Select Committee on China Chairman John Moolenaar, R-Mich., and Sen. Marco Rubio, R-Fla., urged the Defense Department Aug. 28 to place Chinese electric vehicle battery producer Contemporary Amperex Technology Ltd. (CATL) on its Section 1260H list of Chinese military companies, citing the firm’s close ties to the People’s Liberation Army (PLA) and its role in the Chinese Communist Party’s military-civil fusion strategy.

In a letter to Defense Secretary Lloyd Austin, the lawmakers said CATL is positioned “to become the primary supplier of the PLA’s battery infrastructure”; is poised to help the PLA Navy’s conventional submarine fleet transition to lithium-ion batteries for power; and works with several companies already on the 1260H list, including China Mobile (see 2106280023). The lawmakers said CATL is trying to make inroads into the U.S. market, such as by partnering with Ford Motor Company to build a battery factory in Michigan (see 2401300004), and that DOD should ensure the Chinese firm is not allowed to operate on U.S. military bases.

"U.S. policymakers have a duty to stand in resolute opposition to any effort by America’s adversaries that threatens our national and economic security," the lawmakers wrote. “By including CATL on the Section 1260H List, the DoD would not only safeguard America’s military infrastructure from exposure to the PLA, it would also send a powerful signal to U.S. companies that are currently weighing partnerships with CATL."

A DOD spokesperson declined to comment on the letter, saying the department prefers to respond directly to lawmakers on such matters. CATL didn't respond to a request for comment.