February 16, 2023
🌧️ Hello again! We have one more piece of news for you before we head out into the rainy D.C. afternoon.
- We'll send another email like this if we have news tomorrow. Otherwise, see you next week!
1 big thing: Manchin seeks Ford-CATL contracts
Sen. Joe Manchin has asked to review Ford's contract with a major Chinese battery supplier, Nick and Jael write.
Why it matters: Manchin's earlier concern about the deal is now becoming real oversight.
Driving the news: He told Nick in the Senate subway that he asked Ford "for the contract" involved in a deal announced this week for a $3.5 billion EV factory in Michigan that will use technology from Contemporary Amperex Technology Co. Limited (CATL), a Chinese firm.
- The plant was announced in Michigan after a previous attempt to locate it in Virginia was vetoed by Gov. Glenn Youngkin, who claimed the CATL connection posed a national security risk.
- The Senate Energy and Natural Resources chairman released a vague statement after the deal: “Ford has serious questions to answer before Sen. Manchin can fully evaluate the business partnership.”
- Now we know what he meant: He wants the text of the deal.
- "I've already talked to the Ford officials. They're sending us everything. They've been very cooperative," Manchin told Nick.
Between the lines: Manchin has sought many avenues to curb China's involvement in the U.S. energy transition, including with mineral sourcing language in the Inflation Reduction Act's consumer EV tax credits.
- Right now, he's regularly venting about how widely Treasury is applying those credits.
What they're saying: Other Democrats have taken a more positive view of the Ford plant.
- "I have a broader concerns generally about China, but I think we have to recognize that as we onshore manufacturing capacity, it doesn't all happen overnight. You actually have to take steps, and this is a step," Sen. Martin Heinrich, an ENR member, told Nick.
- Ford didn't immediately respond to a request for comment.
Quick take: It's unclear what Manchin can actually do to stop this — but he sure can keep it in the headlines.
- Manchin said he isn't sure whether he'll hold a hearing on the Ford-CATL deal.