Panasonic Energy, a key supplier for Tesla, has unveiled plans to reduce its reliance on China for sourcing materials used in electric vehicle (EV) batteries manufactured in the United States. This decision comes as the company prepares for potential U.S. tariffs on Chinese imports, as reported by Yahoo Finance.
Allan Swan, President of Panasonic Energy of North America, highlighted the urgency of this shift during an interview at the CES trade show in Las Vegas. He stressed that reorganizing the supply chain to move away from China has become a top priority, particularly in response to anticipated policy changes. To this end, Panasonic is bolstering its U.S.-based manufacturing operations, with established facilities in Nevada and a new factory planned for Kansas.
In 2023, the export value of lithium-ion accumulators from Japan reached $3.1 billion, with the United States accounting for $1.6 billion of this figure, according to IndexBox data. These statistics underscore the significance of the U.S.-Japan trade relationship in the technology sector. Meanwhile, Japan imported $2.9 billion worth of lithium-ion accumulators during the same year, with China being the largest supplier, contributing $2.1 billion.
Panasonic’s decision to realign its supply chain is part of a broader trend among global manufacturers to mitigate risks arising from geopolitical tensions and trade barriers. By diversifying its sourcing and manufacturing processes, the company aims to remain competitive while advancing its commitment to sustainable production practices. This proactive approach ensures Panasonic’s resilience in an evolving market landscape.
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