Stellantis Gains Tariff Shield? Jeep Maker’s Chinese Supplier Builds Texas Plant For Copper Wire

The $100 million Grand Prairie facility, set to start output later this year, will produce 3,000 metric tons of copper flat wire annually by 2028 and has already secured Stellantis as a client.

Stellantis will be among the clients of Chinese copper flat wire maker Wellascent, which is building a $100 million factory in Grand Prairie, Texas, as a hedge against geopolitical risks. 

The plant, set to start production later this year, aims to produce 3,000 metric tons annually by 2028, thereby protecting U.S. customers from a 50% tariff on copper wire and other semi-finished products, although refined copper remains exempt, Bloomberg reported.

Hazel Zhu, a Wellascent board member, said some U.S. buyers initially hesitated over supply stability amid Sino-U.S. tensions, but the tariffs turned into “a golden opportunity” once production shifted to the U.S. 

Wellascent expects the facility to generate more than half of its overseas revenue within three years.

The investment stands out as Chinese foreign direct investment in U.S. manufacturing has declined, with net stock falling $8.1 billion between 2019 and 2023. 

Cameron Johnson of consultancy Tidalwave Solutions noted that Wellascent “got lucky in many ways,” as larger Chinese firms have largely pulled back under pressure from both Washington and Beijing.

The project faced hurdles earlier this year when a temporary 145% tariff on equipment shipments nearly derailed construction. 

A trade truce in May removed the extra duties, avoiding what Zhu said would have been a 60% cost increase and allowing equipment deliveries to continue. The truce was extended by 90 days this month as talks continued.

If a broader trade deal is reached, analysts say Wellascent’s Texas venture could serve as a model for other Chinese manufacturers. For Stellantis, the plant provides tariff-free access to a critical component sourced from within the U.S. supply chain.

On Stocktwits, retail sentiment for Stellantis was ‘bearish’ amid ‘low’ message volume.

Stellantis’ stock has declined 17.4% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<