Key Takeaways
- Lawmakers demand a ban on Gotion High Tech and CATL due to alleged ties with XPCC, a Chinese paramilitary organization.
- XPCC is currently under Homeland Security’s Uyghur Forced Labor Prevention Act Entity List.
- Gotion and CATL also denied the allegations, claiming the accusations were false.
A group of lawmakers has submitted a letter to the Department of Homeland Security, demanding to ban Gotion High Tech and Contemporary Amperex Technology Limited (CATL) due to alleged ties with slave labor. Gotion and CATL are two of the world’s biggest suppliers of EV batteries and have business ties with Volkswagen and Ford.
According to John Moolenaar, chairperson of the Select Committee on the CCP, it has been uncovered that the supply chains of these two companies are supposedly linked to the Xinjiang Production and Construction Corps (XPCC). XPCC is a Chinese paramilitary organization currently under Homeland Security’s Uyghur Forced Labor Prevention Act Entity List for its direct contribution to the Uyghur genocide.
Ties With Volkswagen And Ford
“The Select Committee has uncovered indisputable evidence that Gotion High Tech and CATL have supply chains that are deeply connected to forced labor and the ongoing genocide of Uyghurs in China. That is why the Forced Labor Enforcement Task Force must immediately add Gotion High Tech and CATL to the UFLPA Entity List and block the shipments of these companies from entering the United States. The American people expect companies in the US to avoid all involvement with the Chinese Communist Party’s campaign of genocide,” said Moolenaar in a statement.
Volkswagen China Investment Co holds 26% of Gotion’s shares. In a statement to Reuters, VW said that Gotion isn’t tied to any US project or importation business. On its website, Gotion currently lists Fremont, CA, as its headquarters for global operations. Meanwhile, Ford is currently working with CATL, which is constructing an EV battery plant in Michigan as part of a $3.5 billion investment. This was scaled back in November last year but is still underway. The base Select trim of the Mustang Mach-E is equipped with LFP battery packs made by CATL.
Allegations Being Denied
Gotion and CATL both denied the connection to slave labor practices. In a statement sent to Reuters, Gotion said the allegations are “baseless and absolutely false.” On the other hand, CATL issued a press release to answer the allegations, saying that the accusations were “groundless and completely false.”
“With some suppliers quoted in the letter, business relations ceased long ago. With other suppliers, business relations have been conducted with different subsidiaries and with absolutely no connection to forced labor or anything that violates US applicable laws and regulations. With still others, we have never procured any products from them and the cited information is simply wrong and misguided. CATL is in strict compliance with all applicable laws and regulations with respect to its operations and business activities in the US,” CATL said in a statement.
