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Ford Faces Scrutiny Over CATL Battery Deal

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  Published in Automotive and Transportation on Monday, January 19th 2026 at 12:57 GMT
      Locale: CANADA, CHINA

Toronto, ON - January 19, 2026 - Ontario Premier Doug Ford is facing mounting pressure and criticism regarding his government's recent agreement with CATL, a Chinese electric vehicle (EV) battery manufacturer, as concerns over national security, data privacy, and potential risks associated with China's involvement escalate. The controversy, reported extensively by The Globe and Mail, has drawn the attention of federal officials, industry experts, and the opposition, prompting calls for greater transparency and rigorous oversight.

The $4-billion CATL battery plant, slated for construction near London, Ontario, represents a significant investment and a key piece of Ontario's strategy to establish itself as a major hub for EV manufacturing and battery production. Premier Ford staunchly defends the deal, emphasizing the potential for "thousands of good-paying jobs" and touting Ontario's commitment to being "open for business." However, the rapid pace and apparent lack of widespread consultation have fueled anxieties within the province and at the federal level.

Federal Concerns and Data Security Worries

According to The Globe and Mail, officials within the federal government were informed of the deal only days before its public announcement. This late notification, coupled with worries over the potential transfer of sensitive data to China, has raised serious national security concerns. While Premier Ford insists that the province is collaborating with federal partners to address these concerns, ensuring the plant's operations are "done right, safely, and securely," critics remain skeptical.

The concerns aren't unfounded. China's historical track record regarding intellectual property protection and its documented use of data for surveillance operations have heightened anxieties about the security implications of allowing a Chinese company significant control over critical infrastructure like a battery manufacturing facility.

The Role of Stephen Poloz and Calls for Transparency

The involvement of Stephen Poloz, former Governor of the Bank of Canada, further complicates the situation. Mr. Poloz is serving as an advisor to CATL and had previously been consulted by the Ontario government regarding the project. This connection raises questions about potential conflicts of interest and the extent of government oversight throughout the deal's development.

NDP Leader Marit Stiles has sharply criticized the Ford government, accusing them of rushing into the agreement without conducting adequate due diligence. She demands greater transparency regarding the decision-making process and what steps are being taken to safeguard Ontario residents. "It's deeply concerning that the Premier is so dismissive of these national security risks," Ms. Stiles stated.

Federal Government's Response and Ongoing Review

Federal Industry Minister Francois-Philippe Champagne acknowledged the government's awareness of the agreement and confirmed that it is being "monitored closely." Champagne's office released a statement indicating the government will "examine all aspects of the agreement to ensure it aligns with Canada's national security interests and regulatory framework." This suggests a formal review is underway, although the specifics of that review remain unclear.

Ontario's EV Ambitions and the Bigger Picture

This deal highlights Ontario's aggressive pursuit of investment in the burgeoning EV sector, a move seen as crucial for economic growth and competitiveness in a rapidly changing global landscape. However, the CATL controversy underscores the delicate balance between attracting foreign investment and protecting national security interests. The situation serves as a stark reminder of the challenges involved in navigating complex geopolitical relationships while pursuing ambitious economic goals. The province must now strive to demonstrate it can achieve its economic ambitions while simultaneously alleviating the valid concerns being raised about the deal's potential ramifications.