Ford CEO Visits China Six Times: Admits EV Industry Gap

Jim Farley, Ford Motor Company’s global CEO, has made multiple trips to China in recent years to study the new-energy vehicle (NEV) industry—publicly conceding that the U.S.-China gap in electrification is no longer bridgeable in the short term. According to multiple verified sources, Farley visited China six times between 2023 and 2025, touring facilities at BYD, CATL, Huawei’s Intelligent Automotive Solutions division, and battery-industry clusters across the Yangtze River Delta. He even brought several Chinese-made EVs back to Ford’s U.S. headquarters for full-vehicle reverse engineering.

Battery Supply Chain Is the Core Gap

Farley emphasized that the disparity goes beyond end products—it stems from foundational supply-chain capabilities, especially the entire lithium-ion battery value chain. He stated plainly: “China is roughly ten years ahead of the U.S. in battery technology development.” This assessment aligns closely with industry data: In 2025, over 80% of global lithium battery production capacity was concentrated in China; for critical mineral refining and cell manufacturing, China handled more than 90% of global output. CATL has ranked #1 globally in battery shipments for nine consecutive years, capturing 39.2% of the market in 2025—far ahead of its nearest competitor.

Market Share and Operational Efficiency: A Double Squeeze

Industrial advantages translate directly into market momentum. In 2025, China sold 16.49 million NEVs—55.7% of total new vehicle sales; by May 2026, NEV penetration rose to 56.9%. Exports also surged: China shipped 7.09 million vehicles overseas in 2025—including 2.61 million NEVs—and exported 4.02 million units in the first five months of 2026, up 28.3% year-on-year. Large-scale deliveries and localized service networks are now established across Southeast Asia, Europe, and the Middle East.

Even more striking is the R&D pace differential: Overseas automakers typically require 36 months to develop a new model, while leading Chinese OEMs have compressed platform iteration cycles to under 90 days. Farley admitted: “This isn’t solvable by working overtime—it’s about the collaborative efficiency of an entire industrial ecosystem.”

Catching Up Requires Realism—not Restrictions

Ironically, while the U.S. imposes tariffs to restrict Chinese EV imports, Ford’s multi-billion-dollar battery campus under construction in Michigan still relies on licensing agreements with CATL for core cell technology—the facility is slated to begin operations in 2026. The tension between industrial necessity and policy barriers underscores pragmatic concessions amid widening technological gaps.

Industry observers view Farley’s candor not as weakness—but as the starting point of strategic clarity. When the CEO of a century-old automaker personally disassembles Chinese EVs, the deep restructuring of the global auto industry is already underway.