Critical Minerals and Energy Intelligence. Stay Ahead.

Tesla supplier, Panasonic Energy, plans to cut China supply for US EV battery production

Subscribe for Investment Insights. Stay Ahead.

Investment market and industry insights delivered to you in real-time.

Panasonic Energy, a major supplier of electric batteries to Tesla, wants to end its dependence on electric battery supply from China for US production.

Allan Swan, the company’s President for North America, emphasized that eliminating any dependence is the company’s “No. 1 objective”, he told Reuters.

“We do have some Chinese supply but we don’t have a lot… And we have plans not to have some, as we go forward, and that has accelerated”

— Allan Swan, President for North America, Panasonic Energy

The statement comes ahead of Donald Trump’s inauguration and plan to raise trade tariffs. On the campaign trail, Trump pledged to increase tariffs from 10-20%, and as high as 60%-100% on imports from China.

In the US, Panasonic Energy operates a factory in Nevada and plans to open a second plant in Kansas in 2025.

However, the challenge for Panasonic Energy and other companies that we expect to make similar announcements over the next year, will be in divesting away from the China — especially over dependence on critical materials.

Geographical distribution of the global EV battery supply chain 2023 - The Oregon Group - Critical Minerals and Energy Intelligence

Allan Swan stated that the company is working rapidly to reduce this dependency with a “three-pronged attack”, including:

  • signing up more US suppliers
  • assisting Japanese and Korean suppliers to set up operations in the US
  • and accessing existing suppliers already planning US expansions

Our analysis on what Trump and his proposed tariffs mean for mining and critical mineral supply chains:

Subscribe for Investment Insights. Stay Ahead.

Investment market and industry insights delivered to you in real-time.

Disclaimer

The Oregon Group maintains full editorial control over all content published on this website. While sponsored and advertised placements may be featured, the content remains the sole opinion of The Oregon Group. The author may receive compensation or remuneration for providing content, but all statements and expressions are made independently and are not influenced by sponsors or advertisers. From time to time, The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, as well as persons who are interviewed for articles on this website, may have a long or short position in securities or commodities mentioned and may make purchases and/or sales of those securities or commodities in the open market or otherwise. By accessing and using this website, readers are cautioned to assume that each of the foregoing persons may have a financial interest in all companies and sectors mentioned on this website. Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable., and any such statements are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities or commodities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and The Oregon Group undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. The information provided on this website is for informational purposes only and is not, directly or indirectly, an offer, solicitation of an offer and/or a recommendation to buy or sell any security or commodity, and the information provided on this website should not be construed as any advice or an opinion as to the price at which the securities of any company or commodity may trade at any time. The Oregon Group is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient, and the information provided on this website is not and should not be construed as personal, financial, investment or professional advice. Readers are cautioned to always do their own research and review of publicly available information and to consult their professional and registered advisors before purchasing or selling any securities or commodities and should not rely on the information contained herein. Neither The Oregon Group nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

Share this article

about the author

Picture of The Oregon Group

The Oregon Group

The Oregon Group is an investment research team focused on critical minerals, mining, energy and geopolitics.

Tags

Subscribe for Investment Insights. Stay Ahead.

Subscribe and get today’s market and industry trends delivered to you in real-time.

SUBSCRIBE FOR INVESTMENT INSIGHTS

Welcome to The Oregon Group, an investment research team focused on critical minerals, mining, energy and geopolitics.

Our independent capital markets experts are sharing their boardroom expertise and institutional experience to help you profit and hedge your investment exposure during this time of unmissable opportunity.

Subscribe and get today’s market and industry trends delivered to you in real-time.