A top executive told Reuters that Panasonic Energy, a supplier to Tesla, intends to end its supply-chain reliance on China for American-made electric vehicle batteries.
The remarks made by Allan Swan, President of Panasonic Energy of North America, demonstrate how businesses worldwide have been compelled to reevaluate their production methods in response to incoming US President Donald Trump’s promise to increase tariffs on imported Chinese goods.
A division of the massive Japanese electronics company Panasonic, Panasonic Energy provides batteries to Tesla and other automakers.
Trump has pledged to levy a 60% tariff on Chinese goods and 10% tariffs on imports from around the world entering the US. He explicitly promised in November to impose a 25% tariff on imports from Canada and Mexico upon his inauguration on January 20.
The first thing the business has to do in regards to Trump’s plans is “not to have the supply chain dedicated from China,” Swan told Reuters in an interview in Las Vegas on Monday at the CES trade show. According to Swan, Canadian and other foreign suppliers provide the majority of the raw ingredients used in Panasonic Energy’s US-made batteries.
This year, Panasonic Energy intends to establish a second plant in Kansas in addition to its Nevada factory in the United States.
In addition to hiring US suppliers, it is also assisting some of its Korean and Japanese suppliers who are already developing US operations and helping others establish shops in the US.
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