LAS VEGAS, Jan 6 (Reuters) – Panasonic Energy, a key supplier of batteries for Tesla and other automakers, plans to reduce its reliance on China for the production of electric vehicle batteries in the United States. The company, which is a subsidiary of Japanese electronics giant Panasonic, is working towards shifting its supply chain to lessen its dependence on Chinese sources.
Allan Swan, President of Panasonic Energy of North America, discussed the company’s goals in an interview during the CES trade show in Las Vegas. The company’s strategy comes amid shifting trade policies, particularly the impact of potential tariff increases on Chinese goods under U.S. President Donald Trump’s administration. Panasonic Energy’s efforts are part of a broader reassessment by companies worldwide to adjust their manufacturing processes in light of these evolving policies.
In response to the possibility of higher tariffs, Swan emphasized that Panasonic’s supply chain will move away from being focused on China. While the company does currently source some materials from China, its long-term goal is to reduce that dependency. Panasonic Energy is also sourcing a significant portion of its U.S.-made batteries from other countries, including Canada.
The company operates a factory in Nevada and is planning to open a second U.S. facility in Kansas later this year. As global trade policies continue to shift, particularly with regard to U.S.-China relations and tariff considerations, companies like Panasonic Energy are reevaluating their supply chains to mitigate potential disruptions. Other Japanese companies, including automakers Nissan and Honda, are also preparing for potential impacts from new U.S. tariff measures.
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