A key partner for Elon Musk’s Tesla is threatening to sue the U.S. government over the Pentagon’s decision to blacklist it from federal contracts, blasting it a “mistake”.

The Pentagon's running list of companies with ties to the Chinese military now includes CATL, an integral partner to some U.S. automakers.

Ford has a licensing agreement to manufacture electric vehicle batteries with technology from a Chinese company that's under scrutiny at the Pentagon.

The Department of Defense added Contemporary Amperex Technology Co., or CATL, to a list of "Chinese military companies." The company is fighting the designation.