Two Republicans want Pentagon to add Chinese battery maker CATL to restricted list (updated)

China Mobile

28/08/2024 19:48

(Adds no immediate CATL or Pentagon comments in paragraph 4,
more details in paragraphs 5-9)
    By David Shepardson
       WASHINGTON, Aug 28 (Reuters) - Two top Republican
lawmakers on Wednesday asked the U.S. Defense Department to add
Chinese battery maker CATL  300750.SZ  to a restricted list of
companies allegedly working with Beijing's military.
    Companies added to the list cannot receive U.S. military
contracts and being added to the list carries significant
reputational risks, experts say.
    Senator Marco Rubio, the vice chair of the Intelligence
Committee, and Representative John Moolenaar, who chairs the
House Select Committee on China, asked Defense Secretary Lloyd
Austin to immediately place CATL -- formally known as China's
Contemporary Amperex Technology Co -- on the list saying "it
would also send a powerful signal to U.S. companies that are
currently weighing partnerships with CATL."
    CATL and the Pentagon did not immediately respond to
requests for comment.
    The lawmakers said CATL has deep ties to the Chinese
Communist Party and its military, and they argued "reliance on
CATL batteries endangers U.S. national security by making us
dependent on the CCP for energy infrastructure."
    In February, under pressure from lawmakers, U.S. utility
company Duke Energy  DUK.N  said it plans to decommission
energy-storage batteries produced by CATL at one of the nation's
largest Marine Corps bases and will phase out CATL products at
its civilian projects.
    The lawmakers noted that Ford Motor is building a battery
plant in Michigan and plans to license CATL technology to
produce low-cost lithium-iron batteries at the facility.
Lawmakers including Rubio have raised serious concerns about the
plan.
    In February, the Defense Department added more than a dozen
Chinese companies to the list as part of a broader effort to
keep American technology from aiding China.
    The companies added in February include memory chip maker
YMTC, artificial intelligence company Megvii, lidar maker Hesai
Technology and tech company NetPosa. They joined previously
listed aviation company AVIC, BGI Genomics Co  300676.SZ , China
Mobile  0941.HK  energy company CNOOC  0883.HK  and China
Railway Construction Corp  601186.SS .

 (Reporting by David Shepardson
Editing by Chris Reese)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))