Panasonic's Ambitious Bid to Cut China Out of U.S. Battery Supply Chain

Panasonic Energy aims to reduce its dependence on China for materials used in electric vehicle batteries produced in the U.S. This decision aligns with addressing trade policies under U.S. President Donald Trump, who plans to increase tariffs on imports. The company is actively working on strengthening its U.S. supply chain.

In response to U.S. President Donald Trump's trade policies, Panasonic Energy is aggressively pursuing a strategy to eliminate its reliance on Chinese supply chains for electric vehicle batteries manufactured in the United States. According to Allan Swan, President of Panasonic Energy of North America, this shift is a top priority for the company.

Panasonic Energy, a key battery supplier to Tesla and other automakers, is part of the Japanese electronics corporation Panasonic. Trump's proposed tariffs threaten a 10% increase on global imports and a 60% tariff on Chinese goods. Alongside this, a 25% tariff specifically on imports from Canada and Mexico is anticipated when he assumes office.

Currently, Panasonic Energy's U.S. operations rely on international suppliers, but are planning a move towards sourcing domestically. This includes collaborating with suppliers from Japan and Korea to establish a domestic presence. With factories in Nevada and soon Kansas, Panasonic is committed to enhancing the U.S. supply chain amidst growing trade uncertainties.

(With inputs from agencies.)