Battery maker Panasonic Energy’s president Allan Swan said it is a “number one objective” to shift its supply chain away from relying on China.
This reflects a growing trend among companies concerned about the proposed tariffs on imported goods by US President Donald Trump.
Swan told Reuters that Trump’s plans have “accelerated” the company removing some of its Chinese suppliers. This is despite it not having a lot of Chinese suppliers to begin with, he said.
Most of the raw materials Panasonic Energy uses for its American-made batteries are imported. Its North American subsidiary supplies electric vehicle (EV) batteries to Tesla and other automotive manufacturers, according to Reuters.
Trump proposed tariffs of 25% on imports from Canada and Mexico before he was inaugurated. He also said he would implement a 10% tariff on global imports, and a 60% tariff specifically on Chinese goods.
But this marks the first piece of a wider “three-pronged attack” plan to change its supply chain for Panasonic Energy North America.
The company has a plant in Nevada and expansion is set to continue with a Kansas plant opening this year. It makes cylindrical lithium-ion batteries for in-vehicle use, lithium-ion batteries for industrial or consumer use and storage battery modules.
Swan also plans to begin working more with US suppliers. This is alongside looking at Japanese and Korean suppliers who are planning to start operating in the US, he said.
Swan said: “That’s our main focus about building the American supply chain. We have set some quite strong targets about what we want to achieve.”