Tesla is building its batteries from scratch—right here in the USA—and Elon Musk says it’s the most important thing they’ve done in years.
In a world where many American companies still rely heavily on China, Tesla is going against the grain. Elon Musk wants to build Tesla’s future with American hands, American resources, and American innovation.
Why? Because being too dependent on foreign suppliers—especially from China—comes with massive risks.
“Eventually, Tesla will be making its own cathode active materials, refining its own lithium, building its own anodes… No other U.S. company can make similar claims.” – Alexander Potter, Piper Sandler
Why Tesla Is Moving Away from Chinese Materials
Under the Trump administration, there’s a renewed push to bring manufacturing back home. And Tesla seems to be one of the few automakers taking this seriously—not just assembling cars in the U.S., but trying to build every critical battery component domestically.
From mining lithium to building battery cells, Musk says it’s not just about control—it’s about survival.
“It is important, albeit extremely hard work, to localize supply chains to mitigate geopolitical risk,” Musk tweeted on June 3, 2025.
That risk is clear. In 2023, a Nikkei report revealed that 39% of Tesla’s battery materials came from Chinese companies. That’s a huge vulnerability for a company trying to scale globally in a tense geopolitical climate.
But Tesla’s not waiting around.
The New Battery Gold Rush — Powered by Tesla
Tesla is now refining lithium in Texas, building cathodes in-house, and working with U.S.-based cell manufacturers like Panasonic, which is currently building a new battery plant in Kansas.
This isn’t just a company decision—it’s a national move toward industrial independence.
Imagine an EV made in America, powered by a battery built in America, using materials mined and refined in America. That’s Tesla’s long-term play.
And it could have massive implications for U.S. jobs, national security, and the entire auto industry.
Why This Strategy Sets Tesla Apart
No other U.S. carmaker has taken such bold steps to control its entire battery supply chain.
Most automakers still outsource their batteries or rely on Chinese or Korean suppliers for major components. Tesla, on the other hand, is building a supply chain from the ground up—starting with the raw materials.
Alexander Potter, an analyst at Piper Sandler, puts it bluntly:
“Tesla is the only car company that is trying to source batteries, at scale, without relying on China.”
And the timing couldn’t be more critical.
With rising tensions between the U.S. and China, and global supply chains more fragile than ever, Tesla’s foresight may prove to be one of its smartest moves yet.
What This Means for You
If Tesla succeeds, this could change what “Made in America” means forever.
You might soon drive a Tesla that was:
- Built in Texas or California
- Powered by batteries made in Kansas
- Running on lithium refined in the U.S.
- Assembled with little to no reliance on overseas parts
And for American consumers, this means fewer delays, more stable pricing, and potentially better quality control.
It’s not just good for Tesla—it’s good for the American economy.