Tesla Supplier Panasonic Energy Aims to Eliminate China Supply Dependence for US Batteries

Tesla Supplier Panasonic Energy Aims to Eliminate China Supply Dependence for US Batteries

Panasonic Energy, a major supplier to Tesla and other automakers, has announced plans to eliminate its reliance on China for electric vehicle batteries manufactured in the United States. Allan Swan, President of Panasonic Energy of North America, stated that this shift is a “No. 1 objective” for the company. Swan’s comments, made during an interview at the CES trade show in Las Vegas, emphasize the impact of incoming U.S. President Donald Trump’s pledge to impose tariffs on imported Chinese goods. These tariffs have forced companies to reassess their manufacturing processes, including their supply chains. Panasonic Energy is a unit of Japanese electronics giant Panasonic.

Trump’s Tariffs Prompt Supply Chain Reassessments

Trump has vowed to impose 10% tariffs on global imports into the U.S., 60% tariffs on Chinese goods, and 25% tariffs on imports from Canada and Mexico when he takes office on Jan. 20. Swan emphasized that the first priority for the company is to avoid having a supply chain primarily dependent on China.

Panasonic Energy’s Three-Pronged Approach

To modify its supply chain, Panasonic Energy is pursuing a “three-pronged attack.” The company is actively seeking U.S. suppliers, assisting its Japanese and Korean suppliers in establishing operations in the country, and collaborating with suppliers already planning U.S. operations. Swan emphasized that building an American supply chain is the company’s primary focus. “We have set some quite strong targets about what we want to achieve,” he said.

Japanese Firms Brace for Trump Presidency

Japanese companies, including Panasonic Energy, are closely monitoring the uncertainties surrounding Trump’s presidency, particularly his trade policies. Automakers such as Nissan and Honda have expressed concerns about the potential impact of tariffs on Mexico, a crucial production and export hub for the U.S. market. Heavy machinery maker Komatsu has also raised concerns, stating that a potential trade war between the U.S. and Canada would adversely affect its mining equipment business.