Duval Times

Contemporary Amperex Technology Limited (CATL), an electric vehicle battery company, has been identified as having deep ties to the Chinese Communist Party (CCP) and its armed wing, the People’s Liberation Army (PLA). Concerns have been raised about U.S. national security due to reliance on CATL batteries, which could make the nation dependent on China for energy infrastructure.

The U.S. Department of Defense (DoD) has acknowledged the threat posed by CATL but has yet to place it on the “1260H list.” This list exposes Chinese entities operating in the U.S. that have ties to the PLA or contribute to China's Military-Civil Fusion Strategy. The National Defense Authorization Act for Fiscal Year 2024 prohibits the DoD from contracting with entities on this list, including CATL.

U.S. Senator Marco Rubio (R-FL) and U.S. Representative John Moolenaar (R-MI) have sent a letter to DoD Secretary Lloyd Austin requesting immediate action to add CATL to the Section 1260H list.

“U.S. policymakers have a duty to stand in resolute opposition to any effort by America’s adversaries that threaten our national and economic security," said Rubio. "By including CATL on the Section 1260H List, the DoD would not only safeguard America’s military infrastructure from exposure to the PLA, it would also send a powerful signal to U.S. companies who are currently weighing partnerships with CATL.”

Senator Rubio previously led a bipartisan effort opposing the use of CATL batteries at Camp Lejeune, resulting in their removal.

The full text of their letter is provided below:

Dear Secretary Austin:

We write to urge the U.S. Department of Defense (DoD) to immediately place Contemporary Amperex Technology Limited (CATL) on the list required under Section 1260H of the National Defense Authorization Act (NDAA) for Fiscal Year 2021 (Section 1260H List). The Section 1260H List provides transparency on Chinese military companies operating in the United States in order to counter the Chinese Communist Party’s (CCP) Military-Civil Fusion (MCF) strategy.

As you are aware, the criteria for placement on the Section 1260H List stipulate that a company must be actively involved in bolstering Beijing’s military ambitions and contributing to MCF – while also operating in the United States. CATL squarely fits these requirements. Not only has Congress repeatedly exposed CATL’s nefarious activities in the United States, DoD has sounded the alarm on the dangers of CATL operating on military bases due to its deep ties with CCP. CATL’s placement on this list is long overdue and justified.

CATL's connections with CCP and PLA are extensive and obvious. A Foundation for Defense of Democracies report revealed that CATL benefits from “subsidies, tax incentives, favorable procurement deals, and additional policy benefits” from CCP, leading it towards a significant share of global EV battery market.

The founder and top shareholder Zeng Yuqun's endorsement of CCP further aligns with General Secretary Xi Jinping's support for CATL's growth. Zeng is a graduate of Chinese Academy of Sciences closely tied with PLA and MCF ecosystem.

Much like other entities included on this list, CATL’s success supports Beijing’s MCF strategy as PRC powers its military bases with renewable energy supplied primarily by CATL batteries.

In December 2023, CATL announced a partnership with China Mobile already identified as a Chinese-military company by DoD.

Despite some actions taken earlier this year such as removing CATL battery at Camp Lejeune base followed by Navy’s commitment towards American or allied-supplied batteries; isolated actions aren't sufficient without placing CATL formally onto section-1260H-list ensuring complete prevention against using such systems within US military installations complying fiscal-year-2024-NDAA directives banning procurement involving PRC-connected-battery-tech-companies-including-CATL

CATLs attempts expanding influence across US partnering major companies confirm official presence Delaware while Ford Motor resumes constructing Michigan factory despite backlash from congress-stakeholders alongside substantial-battery-energy-storage-system development-deployment Texas

US policymakers duty remains standing firm against adversaries’ threats securing national-economic-security urging inclusion-CATL-section-1260h-list safeguarding America-military-infrastructure-from-PLA exposure signaling-powerful-message-US-companies-considering-partnerships-with-CATL

Given extensive connections between PLA & CCP-MCF-strategy clearly fitting criteria inclusion-expect swift-action-enforcement-measures-prevent-further-exposure-military-systems-appreciating-prompt-response-attention-important-matter

Sincerely,