Ford in Discussions with Xiaomi for EV Partnership, FT Reports

• U.S. lawmakers are raising national security concerns about Ford's potential Chinese partnerships, with Representative John Moolenaar warning that 'China has already shown it will weaponize the auto supply chain' in a letter about Ford's separate BYD discussions
• Ford announced a $19.5 billion writedown in December 2025 and scrapped several EV models as North American automakers scale back their EV push amid struggles competing with Chinese rivals
• The potential Xiaomi partnership faces political headwinds as lawmakers question Ford's $3 billion battery manufacturing facility using technology from Chinese company CATL

Ford-Xiaomi EV Partnership Talks Reported, Quickly Denied

Ford has allegedly held discussions with Chinese electric vehicle maker Xiaomi about forming a joint venture to manufacture EVs in the United States, according to a Financial Times report published Saturday, January 31. Ford immediately denied the report, calling it "completely false." Neither company responded to Reuters' requests for comment, and the report could not be independently verified.

The reported talks come amid heightened political concerns about Chinese automakers and battery manufacturers entering the U.S. market. Republican Representative John Moolenaar, chair of a House committee, recently sent a letter to Ford CEO Jim Farley warning against potential partnerships with Chinese companies. The letter specifically addressed concerns about a possible joint venture with BYD and criticized Ford's plans for a $3 billion battery manufacturing facility using technology from Chinese company CATL.

Moolenaar stated that "China has already shown in recent months that it will weaponize the auto supply chain," emphasizing risks to U.S. automotive industry security.

Market Context:

North American automakers are scaling back aggressive EV strategies after struggling to compete with Chinese rivals. These companies have lost access to certain tax credits and are pivoting toward cheaper EV models and hybrid vehicles instead. Ford announced a significant $19.5 billion writedown in December, scrapping several planned EV models.

Key Players:

• Ford (denied partnership discussions)
• Xiaomi (Chinese EV maker)
• BYD (Chinese automaker, subject of separate congressional scrutiny)
• CATL (Chinese battery technology provider)

The situation highlights ongoing tensions between U.S. automakers seeking competitive technology partnerships and lawmakers concerned about national security and supply chain vulnerabilities.