American Ford Motor Cooperates with Chinese Enterprises, South Korean Media Calculates: South Korean Media Says Ford is Changing Its Mind... Is Electric Vehicles Also Going to Cooperate with China?

¬ Getting Close to Chinese Enterprises to Save Costs

The U.S. government is trying to separate from the Chinese supply chain, but the American "Big 3" automaker Ford is expanding its cooperation with Chinese enterprises. After collaborating with the world's top battery company, CATL (Contemporary Amperex Technology Co., Limited) in battery technology, and using BYD (Build Your Dreams) batteries in hybrid models, it has also been reported that Ford will cooperate with Chinese Xiaomi on electric vehicles. Ford's actions, which are contrary to the stance of the U.S. government, have attracted global attention in the automotive industry.

Especially, Ford's recent moves can be simply summarized as "saying goodbye" to Korean companies and "getting close" to Chinese companies. At the end of last year, Ford dissolved its joint venture with SK On, BlueOval SK, and suddenly terminated its battery supply contract worth 960 billion KRW (approximately 45.9 billion RMB) with LG Energy Solution.

Why is Ford Partnering with China?

According to a report by the UK's Financial Times (FT) on the 1st local time, "Ford is negotiating with Xiaomi to establish a joint venture to produce electric vehicles in the United States." Although Ford and Xiaomi both denied that "there is no basis for this," some analysts believe that Ford, which is relatively behind in the future automobile field, may try to reverse the situation through cooperation with China.

Analysts say the biggest reason for Ford's desire to partner with Chinese companies is "cost saving." Last year, Ford faced sales difficulties due to the temporary demand stagnation of electric vehicles Chasm. In 2025, Ford's electric vehicle sales were 84,113 units, a decrease of 14% compared to 2024 (97,865 units). In October 2025, President Donald Trump completely canceled the electric vehicle tax credit, leading to significant price competition pressure. In 2024, Ford's electric vehicle business lost 5.1 billion USD (approximately 750 billion KRW); in the first three quarters of 2025, the cumulative loss was 3.6 billion USD (about 520 billion KRW).

To seek a breakthrough, Ford is strengthening its collaboration with CATL on battery technology. The price of China's lithium iron phosphate (LFP) batteries is nearly 30% lower than that of Korea's main ternary lithium (NCM) batteries. Ford plans to start mass production of LFP batteries developed jointly with CATL at the "BlueOval Battery Park" being built in Michigan as early as this year. Additionally, Ford plans to produce ESS (Energy Storage System) batteries, which will be the next generation of main products, at its Kentucky factory starting in 2027. This product is also developed based on CATL technology. Ford is also exploring the plan to install BYD batteries in hybrid vehicles produced in Europe.

There is Still a Big Mountain to Overcome Within the United States

The U.S. political circles are very concerned about this matter, fearing that cooperating with Chinese companies may bring security risks. John Moolenaar, Chairman of the U.S. House Committee on U.S.-China Competitiveness, told FT, "This move is a betrayal of the United States and its allied partners." On January 27, he wrote to Ford's CEO Jim Farley, requesting an explanation regarding Ford's relationship with CATL.

Korean companies are also closely watching Ford's moves. The competition between South Korea and China in the electric vehicle and battery sectors has always been fierce, and Korean companies have been focusing on developing the U.S. market, while China has been effectively excluded from the U.S. market. However, if Ford is the beginning, and Sino-U.S. cooperation expands, the foothold of Korean companies will inevitably shrink. In fact, at the end of last year, Ford dissolved its U.S. subsidiary established in partnership with SK On under the pretext of Chasm and planned to produce ESS batteries together with CATL at the factory operated by the joint venture in Kentucky. Industry experts commented, "It is equivalent to CATL replacing the position of SK On, which is focused on cost-effectiveness."

Source: Chosun Ilbo

Original: toutiao.com/article/1856254212249612/

Statement: This article represents the views of the author.