Moolenaar Takes His Battery War to Wall Street

Continuing his crusade against Chinese batterymakers, Rep. John Moolenaar (R-MI) sent a letter to the CEOs of two banks "demanding the banks withdraw from their role" in the upcoming Hong Kong initial public offering (IPO) of Contemporary Amperex Technology Co., Limited (CATL).

CATL, the world's largest electric vehicle battery maker, was added in January to the Pentagon's Section 1260H list of "Chinese military companies."   The firm is a supplier to  General Motors, Volkswagen, BMW, Tesla, Daimler’s electric buses and trucks, as well as many Chinese EV manufacturers.   

Mr. Moolenaar, Chair of the House Select China Committee is a longstanding critic of CATL and its leadership in EV battery technology.  The firm is the technology partner for Ford Motor's BlueOval Battery Michigan project.

Participating inthe underwriting of CATL's share offering is tantamount to "supporting a company linked to the ongoing genocide of Uyghur Muslims in Xinjiang, China, the erosion of American manufacturing, and the endangerment of U.S. service members," read the lawmaker's letters to Jamie Dimon of JP Morgan and Brian Moynihan of Bank of America,   

The offering is expected to raise up to $8bn for the firm as it expandes its manufacturing footprint in Central Europe and other regions.

The letters ask for documents and answers on JPMorgan’s due diligence, internal risk assessments, communications with CATL and U.S. regulators, and awareness of CATL’s ties to sanctioned entities and the PLA.

The inquiry also probes the firm’s valuation methods, investor disclosures, legal protections, marketing strategy, and rationale for below-market underwriting fees. 

You can read the letter to JPMorgan Chase HERE.

You can read the letter to Bank of America HERE.