Dynamo Dispatch (2024/07/15)
Issue 293 | Skild AI, Rohlik, Eve Air Mobility
Dynamo Dispatch. A weekly update from Dynamo Ventures covering the latest and greatest in supply chain, mobility, and building venture-scale businesses.
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Supply Chain š¦
āĀ US and Mexico Move to Thwart China Circumvention of Tariffs. The US and Mexico governments have announced measures to combat the circumvention of US steel and aluminum tariffs by China and other countries. Under a new policy, imports from Mexico will face 25% tariffs unless the steel is melted and poured in North America, and aluminum imports must not contain primary aluminum from China, Russia, Belarus, or Iran. Importers must provide certificates of origin for the metals. This initiative aims to prevent tariff evasion and strengthen North American supply chains, addressing concerns about China using Mexico as a back door to the US market. Across the same border, Californiaās Electric Truck Mandate Could Affect Mexican Transporters.
US Creates High-Tech Global Supply Chains to Blunt Risks Tied to China. The Biden administration is pushing for a transformation of the global semiconductor supply chain, aiming to increase chip production in the US and partner countries like Costa Rica and Vietnam for final assembly. This strategy involves attracting foreign investments in chip manufacturing and establishing new factories overseas, dubbed "chip diplomacy." The plan seeks to enhance security, mitigate risks of supply chain disruptions, and reduce reliance on China amid its growing semiconductor industry and geopolitical tensions. Key initiatives include the CHIPS Act, which allocates funds to develop secure supply chains and improve job training programs in partner countries. As for other risks, Transportation A Top 10 Target of Cyberattackers, Cases Nearly Triple Last Year.
Temu Breaks With Direct-From-China Strategy In Threat to Amazon. Chinese bargain site Temu is expanding its strategy to include shipping from US warehouses, moving closer to Amazon's business model. This shift allows Temu to diversify its offerings and reduce dependence on direct-from-China shipments, which face potential US import bans. By signing up US sellers and Chinese sellers with US inventory, Temu aims to ensure faster delivery and mitigate trade risks. This new approach has already made up 20% of Temu's US gross merchandise volume and comes as Amazon tests a similar discount section using the same de minimis trade provision Temu is moving away from. As for the other Chinese eComm giant, Shein Wants To Be Supply Chain Giant, But Some Fear Chinese Cyber Spying Inside Global Trade Links and Shein to Address Fashion Industry Waste Ahead of Potential Listing.
Walmart is Opening Five Automated Distribution Centers As It Tries to Keep Grocery Dominance. Walmart plans to open five automated distribution centers for fresh food, enhancing efficiency as its online grocery business grows. These 700K-square-foot facilities use automation to handle perishable items, improving inventory precision, and speeding up restocking. This automation contributes to higher capital expenditures, projected at $22B for the year, but is expected to reduce costs by about 20% by early 2026. Walmart's goal is for two-thirds of its stores to be serviced by some form of automation. These new centers will also change workforce needs, requiring fewer manual labor roles and more supervisory and truck driving positions. Related, Amazon Faces Potential UK Probe Over Treatment of Grocery Suppliers and Gas Taxes Canāt Pay for Roads Much Longer, But Amazon Deliveries Might.
Dollar General Streamlines Supply Chain Behind Its Sprawling Store Network. Dollar General is overhauling its supply chain to better manage inventory across its 20K US stores. The retailer plans to reduce the variety of goods it carries by cutting 1K high-shrink items to improve efficiency and combat theft. Additionally, Dollar General is restructuring its distribution network, closing seven warehouses and planning to shut five more, while opening new centers in Arkansas and Colorado to lower transportation costs. These changes aim to ensure timely product availability and improve inventory flow, helping store employees restock shelves faster and enhancing on-shelf availability for customers. On a more macro level, Cargo Ship Grounds, Boxships Stopped Due to South Africaās Bad Weather.
Mobility š
āĀ Tesla Delays Robotaxi Event in Blow to Muskās Autonomy Drive. Tesla Inc. has delayed its planned robotaxi unveiling to October to give teams more time to develop additional prototypes. The two-month postponement was communicated internally, with the design team instructed to rework certain elements of the car. This delay has contributed to a recent significant drop in Tesla's stock, which fell 8.4% on Thursday, its largest decline since January. Shares of competitors Uber and Lyft surged on the news, reflecting investor reactions to the potential shift in the autonomous taxi market. Related, Tesla shares Close Down 8% After Report of Robotaxi Unveiling Delay and Tesla Downgraded to Sell as UBS Says the Stock Overvalues Growth Opportunities.
DOE Allocates $1.7B to Convert Auto Factories to EV Production and Supply. The Department of Energy has announced a $1.7B initiative to convert 11 shuttered or at-risk auto manufacturing plants into EV production facilities. This project will involve factories owned by Stellantis, General Motors, and Volvo across several states, creating over 2,900 new jobs and retaining 15,000 union workers. Funded by the Inflation Reduction Act, the selected projects will focus on manufacturing various automotive supply chain products, including parts for electric motorcycles, school buses, and heavy-duty truck batteries. The grants, part of President Bidenās Justice40 Initiative, aim to support workers with job and technical training, childcare, retirement, and transportation benefits. Elsewhere, Ford Unveils New Capri EV with Nearly 400 Miles Range and Sports Car Performance.
Battery Metal Lithium is Dirt Cheap, and Could Have Further to Fall. Lithium prices have hit multiyear lows due to an oversupply in the market, as the push to build new mines for the clean-energy transition is currently out of lockstep with demand in the quickly growing market. Demand for lithium, essential for EV batteries, has not kept pace with supply as growth in demand for EVs is expected to be lower in 2024 than previous years (25-27% YoY in 2024 vs 40% YoY in 2023). Miners are trying to cope with the yearās slowdown by cutting costs and delaying projects rather than reducing output. Analysts predict that lithium prices may continue to fall before potentially rebounding next year if confidence in EVs increases. Related, Exclusive: In Lithium Industry First, IBAT Commercializes New Extraction Technology and
Italy, Spain Back EU Tariffs on China-Built Electric Vehicles. Italy and Spain support EU tariffs on imports of China-built EVs, with a provisional duty of up to 37.6%, aiming to influence the European Commission's final decision. This non-binding vote is part of an advisory process where EU governments' views are considered for potentially definitive duties in the bloc's significant trade case with China. Germany is set to abstain, while Poland and Greece have yet to finalize their positions.
China's BYD to Invest $1B in Turkey for EV Plant. Chinese EV maker BYD will invest $1B in Turkey to establish an EV and plug-in hybrid vehicle factory with an annual capacity of 150,000 units, marking its second European production hub after Hungary. The investment deal aims to create 5,000 jobs and begin production by the end of 2026. This is the first EV factory in Turkey owned by a foreign manufacturer and part of Turkey's strategy to enhance its local production capabilities and logistical efficiency. Completely unrelated, BMW Recalls Nearly 400,000 US Vehicles for Faulty Airbags; NHTSA Warns on Using Replacements.
The Future of Supply Chain šļø
Check out our podcast series thatās been running since 2018. On each episode of the Future of Supply Chain, we sit down with a different entrepreneur, investor, or industry veteran to discuss innovation, technology, and the most exciting opportunities in supply chain as we build the future of the industry together.
Fundraises and M&A šø
Centriti Raises $720K in Funding. Centriti is a India-based SaaS platform offering end-to-end procurement for the hotel, restaurant, and catering industry. The capital will be used to help in the startupās plan to scale out growth. Emergent India Ventures led the round, with participation from Atrium Angels, Alluvium Capital, Venture Garage, CoralBay Ventures, HOF, and Brigade Group.
Northbound Raises ā¬1.3M in Pre-Seed Funding. Northbound is a global shipping container solutions provider focused on addressing detention and demurrage problems. The capital will be used to continue building out its logistics platform. Apex Black led the round, with participation from id4 ventures, IBB Ventures, Schenker Ventures, MVP Factory, and other angel investors.
Unum Aircraft Seating Raises Ā£3.5M in Seed Funding. Unum Aircraft Seating is a manufacturer of aircraft business class seats. The funding will fuel R&D and expand the sales pipeline. ACF Investors participated in the round.
Jacobi Robotics Raises $5M in Seed Funding. Jacobi Robotics is building AI-powered motion planning software to shorten the deployment timeline of robot arms. The capital will be used expand its platform offerings, starting with the first solution focused on pallets. Moxxie Ventures led the round, with participation from Foothill Ventures, Humba Ventures, and the The House Fund.
Zeti Raises Ā£5M in Series A Funding. Zeti is a fintech provider for clean transport adoption. The capital will be used to further enhance and accelerate the distribution of its digital platform to provide a fully financed and integrated Transport as a Service solution. HYCAP Group led the round.
Feon Energy Raises $6.1M in Seed Funding. Feon Energy is a battery electrolyte startup which develops lithium-metal and ultra-high-voltage lithium-ion batteries. The funding will be used to scale the R&D team, expand its high-throughput molecular discovery platform, and expedite commercial progress with battery and automotive players. The round was led by Fine Structure Ventures, with participation from Eight Roads, Foothill Ventures, MassVentures, EPS Ventures, and Valkyrie Fund.
Phyron Raises ā¬10M in Series B Funding. Phyron is an automated AI-enhanced video solution for the automotive industry. The capital will be used to accelerate its growth and expansion into new markets, especially into the US, as well as further investments into its AI technology. Round2 Capital led the round.
Phaidra Raises $12M in Funding. Phaidra creates AI-powered control systems to optimize the performance of industrial facilities such as data centers. The funding will be used for R&D, implementation, customer success, and expanded GTM efforts. Index Ventures led the round.
Exein Raises $15M in Series B Funding. Exein is a IoT cybersecurity company focused on industrial equipment and robotics. The capital will be used to expand in Europe, the US, and Asia. 33N led the round, with participation from Partech, United Ventures, eCAPITAL, and Future Industry Ventures.
Libattion Raises ā¬14M in Funding. Libattion upcycles EV batteries into stationary energy storage solutions. The round was led by A&G Energy Transition Tech Fund alongside Teknia, HCapital New Ideas II, and Swiss energy utility company EBL.
Pactum AI Raises $20M in Funding. Pactum is a procurement solution leveraging autonomous bots to contact thousands of suppliers for purchases in logistics and other sectors. Maersk led the round, with participation from Karma Ventures, 3VC, Atomico, Project A, SuperAngel, and Portfolion.
Cartken Raises $22.5M in Funding. Cartken is an autonomous delivery robot startup. The funding will be used to strengthen enterprise partnerships and advance the companyās technology. The latest financing was led by 468 Capital with participation from Magna International, Shell Ventures, and Mitsubishi Electric.
Arya.ag Raises $29M in Pre-Series D Funding. Arya.ag offers an integrated grain commerce platform connecting sellers and buyers of agriproducts to facilitate and streamline commerce. The capital will be used to gain market share and improve profitability. Blue Earth Capital led the round, with participation from Quona Capital and Asia Impact.
HERO Raises ā¬40M in Series B Funding. HERO is an end-to-end SaaS platform for trade SMEs in the DACH region. The capital will be used to invest in its team, new talent, expand into new markets, and further develop its SaaS offering. Eight Roads Ventures led the round, with participation from existing investors Cusp Capital and Federated Herme.
Hayden AI Raises $90M in Series C Funding. Hayden AI offers vision AI-powered mobile perception platform to boost public transit efficiency. The capital will be used to explore new applications of the platform and explore more partnerships with other smart city technology providers. TPGās The Rise Fund led the round, with participation from Drawdown Fund and Autotech Ventures.
Eve Air Mobility Raises $94M in Funding. Eve Air Moblity is an eVTOL aircraft manufacturer and service provider. The funding will be used to advance the development and manufacturing of the companyās eVTOL. The capital comes from Embraer, Nidec and other financial investors.
Rohlik Raises $170M in Funding. Rohlik operates automated robotic fulfillment centers and 15-minute grocery delivery services. The funding will be used to accelerate growth and open new facilities in Europe. The investment was led by the European Bank for Reconstruction and Development (EBRD) with participation from existing investors Sofina, Index Ventures, Quadrille, and TCF Capital.
Skild AI Raises $300M in Series A Funding. Skild AI is building a general-purpose brain for a variety of robots that can be retrofitted to existing hardware. The capital will be used to improve its AI model while chasing commercial deployment. Jeff Bezosā fund and Softbank Group led the round, with participation from Lightspeed, Sequoia, and others.
Who's Hiring? š©āš»
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
Lead Product Designer at Raft in London, England.
Commercial Insurance Agent - Trucking at LogRock in Concord, NC.
Lead Software Engineer at Manna in Dublin, Ireland.