Partnerships - GM is partnering with Redwood Materials to utilize EV batteries for powering data centers [1] Technology and Innovation - The collaboration focuses on repurposing EV batteries, potentially extending their lifespan and reducing waste [1]

Industry Overview - The U.S. automotive industry is expected to see a rise in vehicle costs due to tariff policies implemented by the Trump administration, particularly a 25% duty on non-American content, which will affect pricing across the board [1][7] - Automakers heavily rely on global imports of key materials such as graphite, lithium, and semiconductors, making the industry vulnerable to disruptions caused by tariffs [2][7] Company Specifics - Lucid Group is actively working to localize its supply chain to mitigate costs, particularly focusing on battery material sourcing through a new deal with Graphite One for U.S.-processed graphite [3][7] - The partnership with Panasonic for battery production will be delayed until at least 2026, impacting Lucid's ability to offset tariff burdens in the short term [3][7] - Over the past year, Lucid's shares have declined by 38.6%, significantly underperforming the industry average decline of 2.3% [5]

Production & Expansion - Panasonic aims for full production at its DeSoto, Kansas facility this year, with sales already underway [2] - The company invested $4 billion in the DeSoto facility and is eligible for nearly $7 billion in incentives from the Inflation Reduction Act [15] - Panasonic plans to localize 50% of its supply chain within North America by 2030 to enhance resilience [19] Customer & Market Strategy - Panasonic is diversifying its customer base beyond Tesla to include other established OEMs and startups [8][9] - The company is "very bullish" and not currently experiencing a slowdown in orders from key customers [6] - Panasonic acknowledges the hybrid market's continued relevance alongside EV growth, with EV sales rising by 114% [23] Location & Partnership - Kansas was chosen for its available workforce, infrastructure, and the supportive attitude of state officials [11][12] - Panasonic collaborated with local schools and community colleges to create curriculums to ensure a skilled workforce [14] Supply Chain - Panasonic is actively working to diversify its supply chain to ensure resilience, addressing issues highlighted during COVID-19 [18][20] - The refining process for raw materials is a key focus to ensure the quality needed for battery production [21] Future Outlook - Panasonic's next priority after the DeSoto facility reaches smooth operation is yet to be determined (TBD), focusing on producing quality batteries [22] - The company is hopeful that the 45X manufacturing credit will remain intact, supporting job creation and technology advancement in the US [17]

Battery Production & Technology - Tesla is completing a new LFP battery cell factory in Sparks, Nevada [1] - The factory will produce lithium iron phosphate (LFP) cells, which are safer and more affordable [1] Strategic Importance - Elon Musk calls the facility "vital to America," highlighting its importance to domestic battery production [1] - The initiative represents a major step toward U S energy independence [1]

Energy & Technology - Redwood Materials is powering a 2,000 GPU AI data center with 805 retired EV batteries [1] - The project forms the largest microgrid in North America [1] Microgrid Development - The microgrid represents Redwood Materials' next evolution [1]

Energy & Technology - Redwood Materials is evolving to meet the power demands of the AI era [1] - 805 retired EV batteries are powering a 2,000 GPU AI data center in Nevada [1] - The data center forms the largest microgrid in North America [1] Microgrid Development - The microgrid represents Redwood Materials' next evolution in battery collection [1] - The microgrid is located in a Nevada desert [1] Application - The microgrid even powers EV-themed Pac-Man ghosts [1]

Investment Rating - The report indicates a positive outlook for Japanese companies, with expectations of a 3% year-on-year increase in capital expenditure (capex) for FY2025 despite rising uncertainties [5][7]. Core Insights - The capex expansion cycle for Japanese companies continues, particularly in sectors such as semiconductors, automation, power transmission and distribution, and inbound tourism [1][5]. - Corporate profit margins and return on assets (ROA) have reached record levels, with expectations for further improvement due to ongoing corporate balance sheet reforms initiated in FY2023 [1][27]. - Promising companies identified for future growth include Hitachi Construction Machinery, Sojitz, Nippon Yusen, Capcom, SCREEN Holdings, and Tokyo Electron, which are expected to benefit from increased capex and improved profit margins [1][63]. Summary by Sections Capex Trends - Capex has been in an expansion cycle since FY2022, with significant investments in semiconductors, automation, and inbound tourism projected to continue into FY2025 [4][5]. - The manufacturing sector is seeing increased capex driven by digitalization and AI, particularly in semiconductor capacity and electric vehicle (EV) battery production [7][8]. Sector Performance - Key sectors expected to see accelerated capex include machinery, real estate, retail, and automobiles, with ROA improvements noted in machinery, chemicals, steel, and IT & services [4][48]. - Historical data shows that during previous capex expansion phases, sectors such as machinery, automobiles, and chemicals experienced significant profit margin growth [45][46]. Promising Companies - Companies such as Hitachi Construction Machinery, Sojitz, Nippon Yusen, Capcom, SCREEN Holdings, and Tokyo Electron are highlighted for their strong capex plans and potential for increased profit margins and ROA [1][63].

Group 1 - Panasonic plans to cut 10,000 jobs, representing about 4% of its workforce of nearly 230,000, with 5,000 roles in Japan and 5,000 overseas [1][2] - The company aims to enhance operational efficiency by reviewing sales and indirect departments, and optimizing personnel globally [2] - The job cuts are expected to incur costs of nearly $900 million and will be implemented within the current financial year ending in March 2026 [2] Group 2 - Panasonic shares increased by 2% in Tokyo following the announcement [3] - The company is looking to reduce its dependence on China for electric vehicle batteries, with plans to minimize Chinese supply in the future [3] - In 2022, Panasonic adopted a four-day workweek in Japan to improve employee well-being and reduce overwork-related health issues [3][4]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies Core Insights - The China Export Tracker focuses on the dynamics of China exports to the US amid tariff escalations, analyzing data from 48 corporates representing nearly 70% of China export value to the US [2][41] - Export orders from the US to Chinese corporates have stabilized at 92% of pre-tariff levels as of April 28, 2025, showing a slight recovery from 90% in mid-April [3][12] - The report indicates that nearly 20% of corporates have seen improvements in exports to non-US regions, particularly in sectors like pet treats and construction machinery [4] - China shipments and production are in substantial decline, with 35% of US orders being filled from China and 57% from ex-China facilities [11][17] - Corporates report that 40% of their products are experiencing high impacts on shipments to the US, with a significant portion seeing declines of over 50% [12][18] Summary by Sections Export Orders and Shipments - Export orders from the US have largely remained unchanged, with a slight increase noted [3] - Shipments from China are significantly impacted, with many corporates reporting a decline in production and shipments [5][12] Supply Chain Adjustments - Corporates are adjusting supply chains, with many utilizing ex-China production facilities to fulfill US orders [11][13] - Nearly half of the corporates have reported stable or increasing inventory levels in the US, providing a buffer against supply chain disruptions [21][23] Pricing Discussions - Approximately 60% of corporates are engaged in pricing negotiations, with expectations that end users will absorb most tariff costs [25][29] - There is a consensus that tariffs above 30-40% could become unmanageable for the global supply chain [26][31] Capital Allocation and Expansion Plans - Nearly 60% of corporates have ex-China production facilities, with 63% planning to expand or establish overseas capacity despite tariff uncertainties [32] - Corporates are cautious about capital expansion plans, particularly in Mexico and the US, due to ongoing uncertainties [59][61] Container Shipping and Import Data - US container imports from China showed a year-on-year increase of 9% in Q1 2025, but projections indicate a decline of 15% in Q2 and 27% in Q3 2025 [33][35] - Container shipping data has not yet reflected the anticipated decline, with current volumes still showing positive growth [35][36]