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Tesla Accelerates Shift Away from China-Made Components for American Vehicles
15 Nov
Summary
- Tesla replacing China-made parts with non-China components for U.S. cars
- Geopolitical tensions and tariffs drive Tesla's China-free strategy
- Tesla working to manufacture lithium-iron phosphate batteries in the U.S.
As of November 2025, electric vehicle maker Tesla has been actively reducing its dependence on China-made components for its U.S.-produced cars. The company has already replaced some China-sourced parts with alternatives made elsewhere and plans to switch all remaining China-made components to non-Chinese suppliers within the next 1-2 years.
Tesla's move away from China-made parts accelerated this year due to the ongoing trade tensions between the U.S. and China, which have led to fluctuating tariff levels and made it difficult for the carmaker to maintain a coherent pricing strategy. The geopolitical uncertainty and disruptions to the global auto supply chain have further intensified Tesla's urgency in pursuing a China-free strategy for its American production.
In addition, Tesla is working to manufacture lithium-iron phosphate batteries domestically. The company had previously used Chinese-produced LFP batteries in its U.S. cars, but stopped doing so last year as they became ineligible for EV tax credits and faced higher tariffs. Tesla now expects its Nevada facility to start producing LFP batteries for energy storage products in the first quarter of 2026.
