US Implements Ban On Pentagon Battery Procurements From Chinese Makers, Including Warren Buffett-Backed BYD
Portfolio Pulse from Anan Ashraf
The U.S. Defense Department will be banned from procuring batteries from Chinese manufacturers, including Warren Buffett-backed BYD Co., as part of the National Defense Authorization Act (NDAA). The ban, starting in October 2027, affects companies like CATL, BYD, and four other Chinese firms but does not apply to commercial purchases, allowing companies like Ford Motor Co. to continue their business dealings with CATL for electric vehicle batteries. The Pentagon has not provided a definition of the rule's scope or commented on the ban, which also follows previous restrictions on Chinese semiconductors.
January 20, 2024 | 8:55 am
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
Ford Motor Co. can continue its commercial business dealings with CATL for electric vehicle batteries despite the Pentagon's ban on battery procurements from Chinese manufacturers.
Ford's current business dealings with CATL for electric vehicle batteries are not impacted by the ban, as it does not extend to commercial purchases. This maintains the status quo for Ford.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50
NEGATIVE IMPACT
BYD Co., backed by Warren Buffett, is one of the Chinese battery manufacturers affected by the upcoming U.S. Defense Department procurement ban.
BYD Co. is directly impacted by the ban, which could lead to a loss of business with the U.S. Defense Department. However, the ban does not affect commercial operations, which may mitigate the impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80