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Panasonic Energy Aims to Cut China Supply for U.S. EV Battery Business Amid Tariff Concerns

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Panasonic Energy, a key supplier of electric vehicle (EV) batteries to Tesla and other automakers, has set its top priority to eliminate its reliance on China for U.S.-made batteries, according to a senior executive. Allan Swan, President of Panasonic Energy of North America, told Reuters that adjusting the company’s supply chain is its “No.1 objective” in response to the incoming policies of U.S. President-elect Donald Trump, who has pledged to impose significant tariffs on imported goods, including a 60% tariff on Chinese products.

Panasonic Energy, a subsidiary of Japanese electronics giant Panasonic, currently relies on some Chinese suppliers, though Swan emphasized that the company is working towards reducing this dependence. “We do have some Chinese supply, but we don’t have a lot, and we plan to have even less going forward,” Swan stated. The shift is being accelerated by the potential tariffs and is part of Panasonic’s broader strategy to strengthen its American supply chain.

The raw materials used in Panasonic Energy’s U.S.-manufactured batteries primarily come from international suppliers, including those based in Canada. In response to President Trump’s transition team’s recommendation to impose tariffs on battery materials, Panasonic is taking a “three-pronged approach” to modify its supply chain. This includes securing more U.S. suppliers, supporting Japanese and Korean suppliers to set up operations in the U.S., and collaborating with existing suppliers already planning U.S.-based operations.

Swan emphasized that Panasonic Energy’s focus is on building a robust domestic supply chain to meet U.S. production targets. The company operates a factory in Nevada and plans to open another in Kansas later this year. These efforts are part of Panasonic’s broader goal of aligning with U.S. trade policies and increasing local production as the U.S. shifts toward greater protectionism.

Japanese firms, including major automakers like Nissan and Honda, are bracing for the potential impacts of U.S. tariffs, particularly those targeting Mexico, a key low-cost production hub for the American market. Heavy machinery company Komatsu has also voiced concerns about the potential trade disruptions between the U.S. and Canada.

 

TikTok’s Fate Divides Republicans as Supreme Court Case Looms

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The upcoming U.S. Supreme Court case involving TikTok has split opinions among Republicans, with former President Donald Trump opposing a ban on the app, while many of his party allies support the government’s position on national security concerns. The case, set to be argued on Friday, raises critical issues about the balance between free speech and national security.

At the heart of the case is a law passed by Congress last year, with bipartisan support, that mandates TikTok’s China-based parent company, ByteDance, either sell the platform or face a U.S. ban by January 19. The law, signed by President Joe Biden, is driven by fears that China could use TikTok to spy on U.S. users by accessing their data, from personal messages to location information. The Justice Department argues that the app poses a security threat, citing its vast user data and the potential for content manipulation.

TikTok, along with ByteDance, has pushed back against these national security claims, arguing that the law infringes upon First Amendment protections. The company asserts that such a law would allow the U.S. government to ban any speech deemed to be influenced by a foreign entity, undermining free speech rights.

Trump has taken an unexpected stance, stating he has a “warm spot” for TikTok and opposing the ban, which he believes could harm his base, given the platform’s role in boosting his campaign visibility. His lawyer, John Sauer, has filed a request to delay the law’s enforcement until he can address the issue through political means after taking office.

In contrast, many Republican state attorneys general, led by Montana’s Austin Knudsen, have filed briefs supporting the ban, citing national security risks. They argue that allowing TikTok to operate without severing ties with the Chinese Communist Party could expose Americans to data exploitation.

The Supreme Court’s decision is expected to have far-reaching implications for both digital platforms and internet freedom, with some experts warning that a favorable ruling for the government could pave the way for further regulatory action against other platforms with foreign ties, such as Telegram.

The stakes are high for TikTok, which has approximately 170 million active monthly users in the U.S. If the court upholds the law, it could lead to TikTok’s removal from app stores, although users with the app already downloaded may still have access. However, without updates, the app could become increasingly unusable.

 

Emirati Billionaire Sajwani Foresees Increased Gulf Investments into U.S. Under Trump’s Second Term

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Emirati billionaire Hussain Sajwani, founder of DAMAC Properties, predicts a surge in Gulf investments into the U.S. as President-elect Donald Trump begins his second term. Sajwani, a long-time business partner of Trump, announced plans to invest $20 billion in data centers across eight U.S. states, speaking at Trump’s Mar-a-Lago resort in Florida. The real estate mogul highlighted the pro-business policies of the incoming administration, which he believes will attract more foreign investments, particularly in sectors like artificial intelligence (AI) and technology.

Sajwani, whose firm owns the only Trump-branded golf course in the Middle East, stressed that Trump’s policies would foster a more favorable investment climate, aiding in future opportunities for growth in the U.S. Sajwani’s investments extend beyond real estate; he is also an investor in Elon Musk’s SpaceX and xAI. In December, Sajwani celebrated New Year’s with Trump and Musk, and he was invited to the presidential inauguration on January 20.

According to Forbes, Sajwani’s net worth stands at $5.1 billion. Trump’s business dealings with the Gulf are not limited to Sajwani; Trump-branded projects are also under construction in Saudi Arabia and Oman, and Gulf state-owned funds have investments in Jared Kushner’s firm.

As Gulf countries, particularly the UAE, ramp up investments in AI to become regional leaders, Sajwani’s DAMAC subsidiary EDGNEX plans to build and operate data centers with a 2,000-megawatt capacity across Texas, Arizona, Illinois, and five other states. Sajwani emphasized that favorable access to land, energy, and regulatory processes in the U.S. were key factors in the decision to focus on these locations. The data centers will be funded largely through debt, with DAMAC covering the remaining 30% from its balance sheet.

The proposed investment deal is expected to undergo scrutiny by the Committee on Foreign Investment in the U.S. (CFIUS), although Sajwani expressed confidence that the incoming administration would streamline regulatory processes to expedite the approval.