Tesla Supplier Panasonic Energy Targets Reduced Reliance on China

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Panasonic Energy is prioritizing reducing its reliance on Chinese supply chains for electric vehicle batteries produced in the United States, according to Allan Swan, President of Panasonic Energy of North America. In an interview with Reuters at the CES trade show in Las Vegas, Swan emphasized that this shift has become a "No.1 objective" for the company.

Swan's remarks reflect the influence of incoming U.S. President Donald Trump's tariff policies, which include a proposed 60% tariff on Chinese imports and additional global import tariffs. Trump, set to take office on January 20, has also pledged a 25% tariff on goods from Canada and Mexico. These measures have prompted global companies, including Panasonic Energy, a division of Japan's Panasonic, to reevaluate their manufacturing strategies.

"The first priority in response to Trump's tariffs is to avoid a supply chain dependent on China," Swan said, noting that while some Chinese suppliers remain, the company has plans to eliminate this reliance. The majority of materials for Panasonic Energy's U.S.-made batteries currently come from foreign sources, including Canada.

The company, a supplier to Tesla and other automakers, operates a factory in Nevada and is set to open a second U.S. plant in Kansas later this year. 

Recent reports highlight the broader implications of Trump’s trade policies. Reuters previously revealed that his transition team recommended global tariffs on battery materials, while The Washington Post noted discussions around narrower tariffs on critical imports, which Trump later denied.

Japanese manufacturers, including automakers like Nissan and Honda, are preparing for potential disruptions stemming from U.S. trade policies. Mexico, a key production hub for the American market, may face significant impacts from new tariffs. Heavy machinery company Komatsu recently warned that trade tensions between the U.S. and Canada could significantly affect its mining equipment business, calling it a potential "one-two punch."

Paraphrasing text from "Reuters" all rights reserved by the original author.