U.S. Lawmakers Demand Sanctions on Chinese Battery Giants Over Forced Labor Claims

The Wall Street Journal reported that Republican lawmakers in the U.S. have called for immediate sanctions against Chinese battery manufacturers CATL and Gotion Hi-Tech over allegations of forced labor. In response, CATL dismissed these accusations as unfounded and completely false, stating that information about some of their suppliers is inaccurate and misleading.

CATL clarified, “Business relations with some suppliers were discontinued a long time ago. We have established business relationships with other suppliers and other subsidiaries and have no connection whatsoever with forced labor or violation of U.S. laws and regulations.”

Gotion Hi-Tech also refuted the allegations, calling them baseless and false.

According to SNE Research, China is dominating the global power battery market with a 63.9% market share in the first half of this year. CATL continues to hold the largest share, while Gotion ranks ninth worldwide. Gotion Hi-Tech plans to secure a capacity of 100 GWh in major overseas markets, including North America, Europe, Africa, and the Asia-Pacific region by 2030.

According to dominant opinions, the U.S. has raised tariffs on Chinese electric vehicles from the existing 25% to 100%, which is expected to increase the costs for automakers producing vehicles in the U.S.

Many U.S. car manufacturers are faced with the need to restructure their battery supply chains, which could lead to increased car production costs. This could result in upwardly adjusted sales prices for battery electric vehicles sold in the U.S., potentially leading to sluggish sales.