Contemporary Amperex Technology Co., Ltd. raised $4.6 billion in its Hong Kong IPO, defying geopolitical headwinds including a U.S. Department of Defense designation over alleged military ties. The company also banned U.S. onshore investors from its sale as part of its strategy to expand global influence and counter external pressures.

Contemporary Amperex Technology Co., Ltd. (CATL) is involved in a joint venture with Ford to build an EV battery plant in Marshall, Michigan. The project, initially backed by substantial tax credits, has drawn political scrutiny due to the company’s reported ties to the Chinese Communist Party, raising concerns over authoritarian influence in domestic manufacturing policy.

Reports by Globalworks Lund AB allege that CATL, as a key supplier of batteries to Yutong Bus, is connected to forced labor practices in Xinjiang. The investigation highlights concerns over both labor rights and supply chain ethics, as CATL's involvement in the supplier contract until 2032 raises questions about its adherence to ethical standards.

US lawmakers accused CATL of having supply chain links to forced labour and the oppression of Uyghur Muslims, calling for an immediate block on shipments. CATL denied the allegations, asserting that the claims are groundless and that it has severed ties with suppliers implicated in such practices. Additionally, the company adjusted its ownership structure by reducing the shareholding of executives affiliated with the Chinese Communist Party, a move aimed at mitigating risks of being designated a Foreign Entity of Concern.

Republican lawmakers have urged the Biden administration to add CATL to the UFLPA Entity List, accusing the company of having supply chains deeply linked to forced labor and the Uyghur genocide in Xinjiang. The allegations come as part of congressional letters highlighting that CATL's supply chain may be compromised by ties to coercive labor practices.

In February 2024, an NGO report comparing human and labour rights risks at Chinese battery manufacturers alleged that CATL is connected by association to forced labour of Uyghurs through links to Xinjiang. However, the report also noted that CATL does not operate in high‐risk regions and shows no evidence of labour transfers, distinguishing its practices from those of BYD and EVE Energy.

A February 2024 report comparing human and labour rights risks across Chinese battery manufacturers, including CATL, found significant concerns over forced labour and poor working conditions.

U.S. senators including Ted Cruz and Marco Rubio sent a letter to Defense Secretary Lloyd Austin raising national security concerns about the installation of CATL batteries at Camp Lejeune and other military installations. They highlighted potential risks such as malware introduction and cyber vulnerabilities, linking the company’s products to the influence of the Chinese Communist Party.

CATL refuted accusations that its technology poses an espionage threat following reports that its tech was cut off from a US military base. The company's denial appears aimed at distancing itself from politically charged narratives that could link it to state-sponsored surveillance or espionage.

Republican lawmakers have raised concerns over a licensing agreement between Ford and CATL, alleging that forced labor practices in China's Xinjiang region may be linked to the battery supply chain, calling into question the ethical practices behind the collaboration.