Marc Winterhoff, acting CEO of Lucid Group (LCID.US), cautioned Monday that proposed U.S. tariffs would inflate domestic auto manufacturing expenses despite production occurring on American soil. Speaking at Panasonic's new battery facility in De Soto, Kansas, Winterhoff explained how the automotive sector's interconnected global supply chains compel U.S. manufacturers to source materials internationally.

"American consumers will inevitably bear higher vehicle costs under tariff regimes," Winterhoff asserted. "This reality stems from deliberate global supply chain configurations that exist for compelling economic reasons." The Newark-based EV maker now accelerates localization efforts, particularly for lithium-ion battery components, having signed a June agreement with Graphite One to boost U.S.-processed graphite supplies.

Lucid's battery partnership with Panasonic Holdings, established in 2022, previously benefited from advanced manufacturing production credits that offset costs. Winterhoff acknowledged those economic advantages would diminish once tariffs take effect. Currently, both companies explore domestic sourcing alternatives for battery materials, though batteries from Panasonic's Kansas plant won't power Lucid vehicles until 2025.

The warning comes amid significant market headwinds for Lucid, whose shares have plunged nearly 25% year-to-date as tariff uncertainties compound industry challenges. The interim CEO's remarks underscore how protectionist policies could disrupt carefully calibrated manufacturing economics across the electric vehicle ecosystem.