Tesla logo. Reuters Yonhap News.

Electric vehicle maker Tesla, led by Elon Musk, is striving to avoid using Chinese-made parts in electric vehicles produced in the United States, the U.S. daily Wall Street Journal (WSJ) reported on the 14th (local time).

According to the WSJ, Tesla is demanding that its major suppliers, which provide parts for its U.S. electric vehicle plants, completely exclude Chinese-made components.

Tesla's decision to no longer use Chinese-made parts in the U.S. was made earlier this year, and Tesla and its suppliers have already replaced some Chinese-made parts with components produced in other regions, WSJ sources said.

Tesla is reportedly aiming to replace all remaining parts with components manufactured outside of China within the next one to two years.

Previously, Tesla had been trying to reduce its reliance on Chinese-made parts after experiencing difficulties in supplying them during the COVID-19 pandemic. However, this year, as U.S. President Donald Trump began imposing strong tariffs on Chinese imports, the company accelerated its strategy of excluding Chinese-made parts, according to reports.

One of the Chinese-made parts that Tesla finds difficult to replace is LFP (lithium iron phosphate) batteries, with China's CATL being a major supplier to Tesla.

Until last year, Tesla sold vehicles equipped with Chinese-made LFP batteries in the U.S. However, this resulted in them being excluded from electric vehicle tax credits. This year, with high tariffs imposed on Chinese imports, Tesla has stopped using Chinese-made LFP batteries in the U.S., the WSJ reported.

Instead, Tesla is pursuing its own LFP battery production within the United States. Tesla announced last month that its battery production facility currently under construction in Nevada is expected to begin operations in the first quarter of next year.

In April, Chief Financial Officer (CFO) Vaibhav Taneja also stated that Tesla is simultaneously pursuing in-house LFP cell production in the U.S. and "securing additional supply chains from suppliers based outside of China."

The WSJ pointed out that Tesla's moves are an "example of the repercussions of deepening geopolitical tensions between the United States and China."

Yonhap News