Lucid’s CEO Warns of Price Hikes Even for American-Made Cars
[Stay on top of transportation news: .]
The head of Lucid Group warned that President Donald Trump’s tariffs will drive up costs to build automobiles — even in the U.S.
The industry’s global supply chain means domestic manufacturers still have to import raw materials and some parts from other countries, interim CEO Marc Winterhoff said in an interview with Bloomberg Television on July 14.
“For the American consumers, vehicles are going to be more expensive under the tariff regime. There’s no other way around it,” Winterhoff said. “There’s a reason the supply chain is so global.”
The Newark, Calif.-based manufacturer of electric vehicles is looking for ways to reduce costs by localizing more of its supply chain, in particular the raw materials for lithium-ion batteries. Lucid signed a deal in June with Graphite One to boost its supply of U.S.-processed graphite, a key battery component.
RELATED: Lucid to Take Over Nikola’s Arizona Electric Truck Plant, HQ
Lucid has partnered with Japanese electronic maker Panasonic Holdings Corp. since 2022 to supply its batteries, including 2170 cells, which are commonly used in EVs. The economics of that partnership made sense pre-tariffs, Winterhoff said, because of advanced manufacturing production credits that helped defray costs.
RELATED: Lucid Sets Record 749-Mile Run Off Single Charge
Now, the automaker is working with Panasonic to find ways to source more of the cell supply’s raw materials in the U.S., Winterhoff said from Panasonic’s newest U.S. battery plant in De Soto, Kan. However, Lucid will not use cells made in the new facility in vehicles until next year.
“I still have to say, and I hope Panasonic hears that, there is some room for improvement,” Winterhoff said, “but also right now with the tariffs, this is a very good move for us.”
Want more news? Listen to today's daily briefing belowor go here for more info:
