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Tesla supplier Panasonic Energy: cutting China supply 'No.1 objective' for U.S.
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Tesla supplier Panasonic Energy: cutting China supply 'No.1 objective' for U.S.
Jan 6, 2025 10:11 PM

LAS VEGAS, Jan 6 (Reuters) - Tesla supplier

Panasonic Energy plans to eliminate its supply-chain dependence

on China for electric vehicle batteries made in the United

States, a senior executive told Reuters, calling the shift a

"No.1 objective".

The comments from Allan Swan, President of Panasonic Energy

of North America, highlight how incoming President Donald

Trump's pledge to raise tariff imports on Chinese goods has

forced companies around the world to reassess their

manufacturing processes.

Panasonic Energy, which supplies batteries to Tesla as well

as other automakers, is a unit of Japanese electronics giant

Panasonic ( PCRFF ).

Trump has vowed to impose tariffs of 10% on global imports

into the U.S. along with a 60% tariff on Chinese goods. In

November, he specifically pledged a 25% tariff on imports from

Canada and Mexico when he takes office on Jan. 20.

The first thing the business has to do in regards to Trump

tariffs 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.

"We do have some Chinese supply but we don't have a lot," he

said. "And we have plans not to have some, as we go forward, and

that has accelerated."

The bulk of Panasonic Energy's U.S.-made batteries come from

overseas suppliers, including ones from Canada, Swan added.

Reuters last month reported that Trump's transition team

recommended tariffs on battery materials globally. The

Washington Post on Monday reported his aides were exploring

narrower tariff plans covering critical imports, which Trump

later denied.

In the United States, Panasonic Energy operates a factory in

Nevada and plans to open a second U.S. plant in Kansas this

year.

Japanese firms are bracing for the uncertainties around the

second Trump presidency, especially in his trade policies.

Automakers like Nissan ( NSANF ) and Honda ( HMC ) have

hinted possible impacts from U.S. tariffs on Mexico, a low-cost

production and export hub for the American market. Heavy

machinery maker Komatsu ( KMTUF ) last month said a potential

U.S.-Canada trade war would be a "one-two punch" on its mining

equipment business.

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