Pentagon Blacklists CATL and Tencent

The U.S. Department of Defense has blacklisted Contemporary Amperex Technology Co. Limited (CATL), the world's largest electric vehicle (EV) battery manufacturer, due to its alleged ties to China's military, which may complicate relationships with U.S. automotive giants like Tesla, Ford, and GM. This designation prohibits the Defense Department from working with CATL starting in June 2026 and discourages U.S. firms from engaging with the company, despite CATL's assertions that it has never engaged in military-related activities. The blacklisting is part of a broader effort to curb China’s military ambitions and is seen as a measure to protect U.S. national security. Analysts warn that this could disrupt the EV supply chain and lead to market volatility, as companies dependent on CATL for battery supplies may need to explore alternative options. The geopolitical implications of this move signal increasing tensions between the U.S. and China, particularly in strategic sectors like technology and electric vehicles. Both CATL and Tencent, another firm blacklisted by the Pentagon, have announced plans to contest their designations, claiming they are unwarranted and detrimental to their business operations.