Lawmakers Question State Incentives for Ford’s Blue Oval Battery Project and Ties to CATL

State economic development officials told a Michigan House oversight panel on June 4 that the state’s financial support for the Blue Oval Battery campus in Marshall is contracted solely with Blue Oval Battery Michigan, a Ford-owned entity, but lawmakers and outside witnesses pressed officials about licensing ties to Chinese battery maker CATL and the transparency and security of incentive arrangements.

Kristen, a Michigan Economic Development Corporation (MEDC) representative, told the House Oversight Subcommittee on Corporate Subsidies and the House Committee on Homeland Security and Foreign Influence that “this project at the major campus in Marshall is with Blue Oval Battery Michigan, which is an entity wholly owned by Ford. This is not a joint venture.” She added that “no public money has been nor will be awarded to CATL through this project.”

The discussion centered on the structure and size of state incentives, how those incentives changed after Ford resized the project, and whether downstream contracts or licensing with CATL — Contemporary Amperex Technology Co., Limited — present national security risks. Josh, another MEDC representative, said the state has not yet disbursed grant dollars and that “the grant is very specific on what those grant dollars can be used for” and that licensing fees or payments to CATL are not eligible for reimbursement under the grant.

Why it matters: The project is among the largest economic-development investments in Michigan in…