The news: Ford announced plans to build its $3.5 billion EV battery factory in Michigan using technology from China-based Contemporary Amperex Technology Limited (CATL).
The big failed diplomacy problem: Ford’s CATL partnership represents ongoing US-China interdependence. Many decades of US companies outsourcing production to China helped it reach global superpower status through manufacturing prowess.
We expect partnerships like Ford’s to be under scrutiny by the increasing bipartisan hawkishness over China among US politicians.
Prepare for supply chain pain: Rising tensions between the nations creates more urgency for the US to diversify manufacturing out of China. However, the Ford-CATL partnership illustrates that the plan isn’t easy to achieve.
This article originally appeared in Insider Intelligence's Connectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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