Tesla (TSLA) supplier Panasonic Energy plans to reduce its dependence on Chinese components for electric vehicle batteries made in the US, Reuters reported Tuesday, citing an interview with Allan Swan, president of Panasonic Energy of North America.
According to Reuters, he called ending the company's supply-chain dependence its "No.1 objective. "
Panasonic subsidiary Panasonic Energy supplies batteries to Tesla and other automakers, the report said.
President-elect Donald Trump said he plans to impose customs duties of 10% on imports into the US, along with a 60% tariff on Chinese-produced goods.
Swan said the company has to respond by not having a supply chain "dedicated from China," Reuters reported. "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," he reportedly said.
Tesla did not immediately reply to MT Newswires' request for comment.
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