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

The U.S. Defense Department added CATL and Tencent Holdings, to its annual list of companies alleged to have ties to China's military.

The Defense Department has added dozens of Chinese firms to a list of companies that are prohibited from working with the Pentagon and defense industry due to their alleged ties with China’s military,

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

Tencent’s shares plunged nearly 10 percent after it was designated a military company. The Chinese battery manufacturer CATL was also added to the list.

Battery maker CATL and tech firm Tencent said they are seeking removal from the Pentagon's list of companies it says are linked to China’s military.

The addition of Contemporary Amperex Technology Co., Limited (CATL) to a Chinese military-linked entities list has thrust Tesla’s reliance on the Chinese battery giant into the spotlight. While the designation currently imposes no direct sanctions,