This article was updated on 11/25 to include a response from CATL and on 11/26 with additional information.
Attorney General Ken Paxton has opened an investigation into the use of Chinese Communist Party-aligned technology in critical state infrastructure, targeting components supplied by Contemporary Amperex Technology Co. Limited at a power storage facility near Mabank.
The Lone Star Infrastructure Protection Act prohibits direct or remote access to Texas infrastructure by Chinese-controlled firms.
Paxton warned, “Texas must not allow foreign communists to infiltrate, interfere, or otherwise undermine our power grid or other parts of our state infrastructure. The CCP is a bad actor, and it is unlawful for aligned companies to meddle in our state in order to grant backdoor access to their handlers. If you mess with Texas, I will come after you.”
The investigation centers on allegations that the power station’s use of CATL battery systems—which have reportedly failed certain tests—may violate state law by providing prohibited actors potential access to Texas’ electrical grid.
Under state law, contracts and agreements with companies under CCP influence are forbidden for critical infrastructure projects. Violators could face fines if they report incomplete or false information to Texas’ grid operator, ERCOT.
The attorney general’s office said the results of the investigation will determine whether further legal action or policy changes are needed to protect the state’s vital infrastructure.
A CATL spokesperson told Texas Scorecard the company “welcomes responsible discourse on important security issues, and we take questions about our business seriously. CATL is a public company listed on the Hong Kong and Shenzhen stock exchanges, and no government entities or political figures hold a golden share in CATL’s corporate structure. CATL strictly complies with all applicable laws and regulations globally, including the Texas state law – the Lone Star Infrastructure Protection Act, as well as other data control and cyber security rules.”
“CATL is committed to cooperating with the Texas Attorney General’s investigation,” added the spokesperson. “We remain confident in the integrity, safety, and compliance of our technologies and operations, and we believe this misunderstanding will be clarified.”
Providing additional clarification, the spokesperson said, “CATL’s role in the Mabank, Texas project is limited to supplying energy-storage modules – battery cells connected with metal bars. They do not possess any communication capabilities. CATL has not provided installation, commissioning, operational, or technical services for this project and has not sent personnel to the site. In short, CATL has no technical pathway or operational role that could access the facility’s systems, perform data monitoring, or exercise remote control in any form.”
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