New York, Jan 28, 2026, 15:27 EST — Regular session
- Ford shares slip following scrutiny from House panel chair over CATL-linked battery and energy-storage projects
- A lawmaker questions if Ford adjusted its licensing terms amid stricter U.S. tax-credit rules
- Investors are keenly awaiting Ford’s response and further details ahead of its Feb. 10 earnings report
Ford Motor (NYSE: F) shares dipped on Wednesday following criticism from a Republican House committee chair targeting the automaker’s battery deal with China’s CATL, introducing new political uncertainty to Ford’s energy-storage plans. By afternoon, the stock had fallen roughly 0.8% to $13.82. 1
The letter arrives as Ford pushes to repurpose battery plants originally designed for electric vehicles to produce lithium iron phosphate, or LFP, cells and large storage packs for utilities and data centers. Changes in licensing for that Chinese technology could impact whether these batteries meet U.S. tax credit requirements and how fast Ford activates idle capacity. Back in December, Ford announced a $19.5 billion writedown — a non-cash accounting hit — and plans to cut several EV models.
The timing coincides with a stubborn rate environment. On Wednesday, the Federal Reserve held rates steady and offered scant hints on when cuts could return, spotlighting auto affordability and financing amid ongoing earnings reports. 2
Representative John Moolenaar, Republican chair of a U.S. House committee, pressed Ford CEO Jim Farley on whether the company’s licensing deal with CATL has been revised following new eligibility restrictions introduced by a law passed last year. Moolenaar said Ford’s updated plan “raises important questions” about potential changes to the licensing terms.
Moolenaar pressed Ford on any plans for a joint venture with Chinese automaker BYD, warning that China might “weaponize the auto supply chain.” Ford responded that boosting LFP production in the U.S. is an investment in “energy security” and jobs, adding confidence that the batteries qualify for tax credits.
Ford is framing the shift as a pure industrial move. On Tuesday, the automaker appointed Lisa Drake as president of Ford Energy, a fresh division aimed at rolling out battery energy storage systems, or BESS. “Her leadership is essential as we stand up Ford Energy,” said vice chair John Lawler. Drake added the unit will initially target utility-scale storage for major customers. 3
Supply chain jitters are creeping back. Ford and General Motors have held talks with bankrupt supplier First Brands Group about a potential financing deal to keep parts moving during its Chapter 11 proceedings, the Financial Times reported, citing sources Reuters also spoke to. The discussions reportedly include paying upfront for expected deliveries to prevent production hiccups. 4
Detroit’s scoreboard caught some attention Wednesday. GM shares slipped around 1.4% after jumping sharply the day before, when the automaker raised its profit outlook for 2026, boosted its dividend, and greenlit a $6 billion share buyback. Evercore ISI analyst Chris McNally described GM’s forecast as “a very strong guide.” Meanwhile, Tesla shares edged up about 0.8%. 5
Following the Fed’s move, broader markets grew cautious, as stocks slipped back from record highs and the dollar maintained its gains. The central bank pointed to persistent inflation and robust growth, opting to keep rates unchanged. 6
Politics around Chinese battery technology can quickly morph into delays, compliance headaches, or missed incentives — costly if Ford finds itself stuck with underused factories. A supply glitch linked to First Brands, or a stretch of elevated borrowing costs, would pile on just as Ford aims to expand its profit narrative.
Investors are waiting to see how Ford responds to Moolenaar’s committee and what details emerge about Ford Energy’s plans to scale up sales of storage systems. The next key update comes with Ford’s fourth-quarter earnings webcast, set for Feb. 10 at 5 p.m. ET. 7
