Could new tariffs impact the Panasonic factory in Kansas?

TOPEKA (KSNT) – The U.S. is set to impose tariffs on Chinese battery materials, a move that Panasonic Energy Co, Ltd. has expressed concerns over.

The U.S. Department of Commerce announced that after an investigation, it would be imposing a 93.5% anti-dumping tariff on battery-grade graphite from China on Thursday, July 17. Domestic producers argue they’ve been undercut by Chinese producers.

“We are closely monitoring the situation and assessing potential impacts on our business, while continuing efforts to minimize any adverse effects,” a Panasonic spokesperson told 27 News. “At this point, we are still reviewing the situation and will refrain from commenting on the potential business impact. That said, we have not seen any signs of a slowdown in current customer demand for automotive batteries.”

Companies must choose to pay higher prices for Chinese imports or risk shortages in an unproven U.S. market, according to an Investing News Network article shared by Nasdaq, Inc. The new tariff, after being combined with the already-existing tariffs, raises the total effective rate to around 160%, according to the American Active Anode Material Producers.

”While preliminary, this determination carries real and immediate legal weight,” Northern Graphite Chief Executive Officer Hugues Jacquemin said. ”It’s a clear signal that efforts to establish a fair and competitive North American graphite industry are gaining traction.”

LG Energy Solutions warned on Friday, July 25, that it expects further slowdown in battery demand due to tariff and policy uncertainties. Additionally, U.S. legislation will end federal subsidies for electric vehicle purchases on Sept. 30 which LG CFO Lee Chang-Sil says will lead to price increases and a slowdown in EV growth in North America.

Panasonic opened its new 300-acre cylindrical lithium-ion battery factory for electric vehicles in De Soto, Kansas on July 14, making it one of the largest automotive battery plants in the nation. The factory has already begun the mass production process of 2,170 cells, with an annual production goal of about 32 gigawatt hours (GWh).

Kansas Governor Laura Kelly said the De Soto plant has already hired about 1,000 staff and that it is expected to bring about $2.5 billion annually to the State of Kansas. Following the opening, Kelly proclaimed July 14 as Panasonic Day.

Final determinations for the tariff investigations will be issued around Dec. 5, 2025. The findings may result in higher tariffs.

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