Chinese media reports have revealed that a U.S. battery manufacturer, which has received support from the Biden administration, relies on technology provided by a company linked to the Chinese Communist Party (CCP).
This information was uncovered during a review conducted by the Daily Caller News Foundation. The findings highlight a concerning reliance on technology from a CCP-led entity, raising questions about the potential implications and risks associated with such a partnership.
In early June, the Department of Energy (DOE) granted an $850 million loan to KORE Power, a U.S.-based battery company, for the construction of its “KOREPlex” battery-cell production facility in Arizona.
The loan was presented by the DOE as a means of promoting onshore electric vehicle supply chains. However, KOREPlex’s operations will depend on technology provided by its longstanding Chinese manufacturing partner, Do-Flouride New Materials (DFD), as confirmed by Jigar Shah, Director of the DOE Loan Programs Office, during a recent interview on Wednesday.
This revelation raises concerns about the extent of reliance on foreign technology within a project supported by the U.S. government.
Nothing to see here. Just more for the Big Guy 👇
The Dept of Energy awarded KORE Power an $850 million loan to construct its KOREPlex battery-cell production facility in AZ. KOREPlex will rely on tech from CCP manufacturing co, Do-Flouride New Materialshttps://t.co/LPkXRFOFAM
— Joe Has Dementia (@RokerGlasses) June 27, 2023
In a statement, Shah said, “In this deal that we most recently announced two weeks ago, KORE, it’s an American company, they’ve been around for a long time, but they are using technology from a Chinese company, DFD, to manufacture battery cells in Arizona.”
Shah omitted the fact that DFD has connections to the CCP.
DFD’s chairman, Li Shijiang, was recognized by the Central Committee of the CCP in 2021 as an “Outstanding Communist Party Member,” as reported by Xinhua News Agency.
Additionally, Shijiang had previously received recognition in 2019 as one of nineteen “Outstanding Veterans of the Year” of the Chinese People’s Liberation Army (PLA), according to PLA Daily, a Chinese military news outlet.
According to Reuters, Xue Xujin, currently holding a position as deputy general manager in DFD’s executive leadership, is also identified as a member of the CCP in DFD’s 2016 annual report.
According to Henan Daily, DFD originated from a state-owned enterprise known as Jiaozuo Cryolite Factory. The company, which operates in global markets, specializes in the production and distribution of fluoride products, as reported by Reuters.
KORE Power relies on DFD as the main manufacturer of its Mark 1 battery. In a 2019 press release, it was stated that DFD’s assembly lines and manufacturing processes for battery production would serve as the technological foundation for KORE’s new facility in the United States.
Rather than replacing the Chinese manufacturer with the U.S. facility, KOREPlex aims to “augment” the production capacity of its Chinese partner.