Two Chinese companies that supply EV battery materials to Tesla, Ford, GM, and Volkswagen deny claims that their supply chain relies on government-sponsored forced labor camps.

In two letters to the US Department of Homeland Security, the Republican-led US House Select Committee on the Chinese Communist Party (CCP) outlines what it says is "shocking" new evidence that connects the supply chains of CATL and Gotion to the camps and calls for an immediate import ban.

Such a move would significant effects on the global auto industry. CATL is the world's largest EV battery supplier, and says it has developed a battery that can recharge in just 10 minutes. Volkswagen-backed Gotion is also growing its presence in the industry, including building a new plant in Illinois.

It would also hamper efforts to reduce carbon emissions from transportation. Passenger vehicles make up 16.5% of total US emissions, the EPA says, contributing to rising global temperatures. Last year was the warmest year on record, the World Meteorological Organization reports.

The US prohibits items made with Uyghur forced labor from entering the country under the Uyghur Forced Labor Prevention Act Entity List. Sen. Marco Rubio and Reps. John Moolenaar, Mark Green, Carlos Gimenez, and Darin LaHood say EV batteries made by these companies should be added to the list.

"Despite CATL and Gotion holding these ties to Chinese paramilitary organizations and state-sponsored slave labor programs, the companies have operated and expanded their presence in the United States," the committee says.

CATL calls the claims "groundless and completely false."

The US committee says CATL and Gotion source key minerals and components from companies that operate in the Xinjiang region where the camps are located.

In two separate letters, one about CATL and one about Gotion, the committee draws supply chain diagrams that claim to show ties to organizations like Xinjiang Production and Construction Corps (XPCC), "a Chinese paramilitary organization, sanctioned by the United States for its direct contribution to the Uyghur genocide."

CATL calls the information in the letters "inaccurate and misleading," and says "business relations ceased long ago" with some suppliers listed. The partners it still works with have "absolutely no connection to forced labor or anything that violates US applicable laws and regulations."

The Biden administration has its own concerns over China's growing EV and battery industry. President Biden recently hiked up tariffs on Chinese EVs, all but preventing them from US sales. The terms of the EV Federal Tax Credit also require eligible vehicles to have a limited amount of foreign-sourced battery materials and components.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved