GOP Lawmakers Urge Ban On Chinese Battery Suppliers Tied To Ford, Volkswagen Over Forced Labor Allegations

A group of Republican lawmakers has reportedly called for a ban on Chinese battery suppliers with connections to Ford Motor Co. F and Volkswagen AG VWAGY over allegations of using forced labor.

What Happened: The lawmakers have urged the Biden administration to add Contemporary Amperex Technology (CATL) and Gotion High-Tech to the import ban list under the Uyghur Forced Labor Prevention Act, The Wall Street Journal reported.

CATL is the world’s largest electric car battery manufacturer and a partner of Ford, while Gotion is a battery company partially owned by Volkswagen. The Republican lawmakers have accused these companies of using forced labor in their supply chains.

The lawmakers, including Rep. John Moolenaar, Rep. Mark Green, and Sen. Marco Rubio, have sent letters to the Department of Homeland Security, calling for the immediate addition of CATL and Gotion to the entity list under the Act.

CATL has reportedly denied the allegations. CATL stated that it is committed to maintaining a responsible supply chain, while Gotion, Ford, and Volkswagen did not respond to requests for comment from WSJ.

New Tariffs On EVs From China: In May, President Joe Biden on Tuesday hiked tariffs on an array of Chinese imports including EV batteries, steel and aluminum, and solar products. The government also imposed a 100% tariff on electric vehicles made in China, quadrupling it from the previous 25%.

Biden administration further implemented a 25% tariff on electric vehicle batteries from China and a 25% tariff on critical minerals that go into making these EV batteries.

"Because we’re not going to let China flood our market, making it impossible for American automakers — automobile — auto manufacturers to compete fairly," President Joe Biden said about the decision. "Folks, look, I’m determined that the future of the electric vehicles will be made in America by union workers. Period."

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read More: Chinese Automakers Surge In UK As Tesla, Ford Sputter: BYD Leads 2,700% Sales Increase In May

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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