Dynamo Dispatch (2025/04/28)
Issue 329 | Electro.aero, Isembard, Neurolabs
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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Weekly Commentary 💭
This week’s edition covers growing cracks in the US-China trade war, as both sides quietly carve out tariff exemptions to shield key industries amid mounting economic turbulence. Meanwhile, global container shipping volumes are poised to drop, Nvidia is making a massive $500B bet on US chip manufacturing, and new EV and mobility developments highlight a widening technology gap between China and the US. As always, read on for more.
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Supply Chain 📦
⭐ Cracks Appear in China-US Trade War as Tariffs Roil Industries. Despite escalating rhetoric, both the US and China are weighing tariff exemptions to protect vulnerable sectors like plastics, semiconductors, and aviation, revealing cracks in the hardline trade war stance. Beijing may suspend tariffs on key US chemical and tech imports, while Washington has temporarily excluded electronics like smartphones from its levies, prompting companies such as Apple to diversify supply chains. Meanwhile, China is preparing broader economic defenses, stabilizing markets and supporting domestic demand, as volatility surges in sectors like gold and equities. Globally, central banks and governments—from the UK and Japan to the IMF—are responding to rising uncertainty with policy shifts and economic warnings, underscoring the widespread ripple effects of the ongoing trade conflict. Related, China Grants Some Tariff Exemptions for US Imports as Trade War Bites and Japan Weighs Buying More US Soybeans as Part of Tariff Deal.
Drewry: Global Container Shipping Volume to Fall 1% in Response to Trump Trade Policies. Maritime consultancy Drewry forecasts a 1% decline in global container port volume in 2025, driven directly by aggressive tariff policies, marking only the third global shipping demand drop since 1979. US imports from China could fall by as much as 40%, prompting widespread shipment cancellations and a projected 20% drop in containerized imports by US retailers in the latter half of the year. While production may shift to lower-tariff countries, partially offsetting the decline, ports like Los Angeles are bracing for a sharp volume drop as early as May. Economists and the IMF warn that these policies could trigger a US-led global recession and broader economic slowdown. For more, Blank Sailings Rattle Trans-Pacific Trade as China Imports Nosedive, Cargo Shipments From China to US Slide Toward a Standstill, Knight-Swift, Union Pacific Brace for West Coast Volume Downturn and Moody’s Downgrades US Port Outlook to ‘Negative’ on Sinking Cargo Volume.
Nvidia to Spend $500B to Manufacture AI Chips in US. Nvidia announced it will manufacture some of its AI chips in the US for the first time, investing up to $500B over the next four years to build AI infrastructure and expand production facilities with partners like TSMC, Foxconn, and Wistron. The move, which includes new supercomputer plants in Houston and Dallas, aims to strengthen Nvidia’s supply chain, meet soaring demand, and create thousands of jobs. This announcement comes as the Trump administration pushes hard to increase US manufacturing through tariff policies. Related, Roche to Invest $50B in US to Avoid Trump Tariffs, Create 12,000 Jobs.
Shein and Temu Tax-Free Parcels Rule Under Review. The UK government is reviewing the "de minimis" rule, which currently allows international parcels under £135 to enter duty-free and gives companies like Shein and Temu an edge. While some small business advocates warn that scrapping the exemption could raise costs for both sellers and consumers, others emphasize the urgency of closing the loophole to prevent tax losses and market distortion. The review comes amid broader global trade shifts, with the US having recently revoked a similar exemption, prompting fears that China may redirect exports to more lenient markets like the UK. Related, Shein Hikes US Prices on Some Goods as Much as 377%.
Trump Says US Ships Need Free Travel Through Panama, Suez Canals. President Trump has called for American ships to receive "free of charge" passage through the Panama and Suez canals, intensifying his push to expand US control over critical global waterways. His broader strategy, including port call fees for Chinese-linked ships, focuses on countering Chinese influence and hopes to revive the shrinking US shipbuilding industry which has suffered since the 80’s due to subsidy cuts and foreign competition. Panama has already agreed to allow free passage for US warships, but tensions remain high as Chinese-backed port deals in the region face growing scrutiny and disputes. Completely unrelated, Can 3500% Tariffs Protect The US Solar Industry.
Mobility 🚗
⭐ At NY Auto Show, Talk of Trump’s Tariffs Is Inescapable. At this year's New York Auto Show, excitement over new vehicle launches was overshadowed by concerns around Trump's tariffs, which dominated conversations among automakers. Brands like Nissan explicitly promoted tariff-free American-built vehicles, while executives from Subaru and others faced repeated questions about tariff impacts on their business. Industry leaders privately expressed frustration over ongoing lobbying efforts failing to influence the Trump administration. Also, Auto Lobbying Groups Unite to Pressure Trump for Tariff Relief and Another German Automaker Is Mulling Over Opening A US Factory In The South.
Trump’s Auto Tariffs Flip the Script for Car-Price Competition. The auto industry is facing turbulence from Trump’s tariffs, but unlike the pandemic, carmakers may struggle to pass rising costs to consumers. Brands with US factories and local supply chains, like Nissan and Hyundai, are better positioned to capitalize, while others risk losing share or absorbing costs. Nissan plans to ramp up US production to undercut competitors like Toyota, while Hyundai and VW are also adjusting strategies to stay competitive. Still, risks loom, as executives warn that chaotic trade policy could drive inflation or spark a recession if tariffs persist. Making a splash, Bezos-Backed Slate Auto Unveils Affordable EV Truck.
Uber, VW Pair Up To Launch Robotaxi Service In US With Self-Driving, Electric Microbuses. VW of America and Uber announced a plan to launch a commercial robotaxi service using autonomous electric VW ID. BUZZ vehicles. Initially starting in Los Angeles by late 2026, human safety drivers will oversee operations with fully driverless service targeted for 2027. VW will provide vehicles and fleet management, while Uber handles the ride-hailing platform. The move highlights Uber’s broader strategy of partnering with AV firms to expand its autonomous ride services. Elsewhere, Tesla Supplier STMicroelectronics Expects Lower Sales, but Signals Recovery Is Coming.
China Sends Boeing Planes Back To US Over Tariffs. China has begun returning planes to Boeing in retaliation for Trump’s tariffs, with two already sent back and a third on the way. Chinese customers have halted deliveries, jeopardizing the planned shipment of 50 planes this year. Boeing is now looking to reassign 41 already-built aircraft to other buyers amid strong global demand. Ortberg emphasized Boeing’s daily communication with the Trump administration and expressed hope for trade negotiations, while also warning that suppliers in Japan and Italy are newly exposed to tariffs. In good news, Boeing Eases Latest 737 MAX Headache - A Shortage Of Nuts and Bolts.
Five-Minute EV Charging Is Here, but Not for US-Made Cars. Chinese battery giants CATL and BYD have unveiled technologies that can charge EVs in just five minutes. While CATL and BYD's advancements highlight China's dominance in EV batteries and infrastructure, their widespread adoption will initially be limited by the need for an expanded network of ultra-fast charging stations. Meanwhile, heavy US tariffs on Chinese goods, including EVs, mean American consumers are unlikely to benefit from these breakthroughs anytime soon, further widening the technology gap. As China accelerates its domestic EV transition and infrastructure buildout, the US is struggling to catch up, despite efforts like Ford’s partnership with CATL and growing interest in alternative battery technologies like sodium-ion cells.
The Future of Supply Chain 🎙️
Check out our podcast series that’s 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 💸
MatBook Raises $750K in Pre-Seed Funding. MatBook is a materials procurement startup offering an AI-powered platform that enables US contractors and distributors to source construction materials directly from vetted global manufacturers. The funding will support US expansion into key construction markets and enhance its AI tools for sourcing, quality assurance, and pricing intelligence. Seedstars International Ventures, Fluent Ventures, and Everywhere Ventures led the round, with participation from angels affiliated with Autodesk and Amazon.
Durin Raises $3.5M in Pre-Seed Funding. Durin is a US-based mining technology startup developing robotics and automation systems to lower the cost of minerals exploration drilling. The funding will be used to build sensor-equipped drilling rigs, gather operational data, and accelerate development of fully automated drilling systems. 8090 Industries led the round, with participation from 1517, Andreessen Horowitz, Bedrock, Champion Hill, Contrary, Day One Ventures, and Lux Capital.
Neurolabs Raises $7.8M in Series A Funding. Neurolabs provides an Image Recognition as a Service platform that uses synthetic data and visual AI to help CPG brands optimize in-store operations. The funding will be used to grow the computer vision engineering team and expand commercially across the UK, Europe, and the US. Nauta Capital led the round, with participation from LAUNCHub, Lunar Ventures, and Techstart.
Isembard Raises $9M in Seed Funding. Isembard is building a distributed network of high-precision manufacturing facilities across the West. The funding will support expansion beyond the UK, scaling operations for sectors like aerospace, defense, and energy. Notion Capital led the round, with participation from 201 Ventures, Basis Capital, Forward Fund, Material Ventures, Neverlift Ventures, NP-Hard Ventures, and notable angels.
Okapi Raises $14.8M in Seed Funding. Okapi is a space traffic management startup offering AI-powered collision-avoidance and space-situational-awareness tools for satellite operators. The funding will support expansion of Okapi’s product portfolio, international team, and proprietary datasets to further advance space safety and compliance solutions. VenTech led the round, with participation from Matterwave Ventures and Amadeus Apex Technology Fund.
ChEmpower Corp Raises $18.7M in Series A Funding. ChEmpower is a semiconductor manufacturing enablement technology which provides a polishing solution necessary for the manufacture of integrated circuits. The funding will be used to enhance the technology and support further R&D. The round was co-led by M Ventures and Rhapsody Venture Partners and joined by Intel Capital, Pangaea Ventures, Foothill Ventures, In-Q-Tel and TEL Venture Capital.
Electra.aero Raises $115M in Series B Funding. Electra.aero is an advanced aerospace company developing hybrid-electric Ultra Short takeoff and landing aircraft that combines helicopter versatility with fixed-wing safety and cost advantages. The funding will support pre-production and certification of the EL9 aircraft. Prysm Capital led the round, with participation from Lockheed Martin Ventures, Honeywell, Safran, Statkraft Ventures, VIPC, and others.
Nuvocargo Acquires Merge Transportation. Nuvocargo is an AI-powered platform offering 3PL, 4PL, freight brokerage, customs brokerage, and managed transportation solutions across the US, Mexico, and Canada. Merge Transportation is a 3PL who works with companies shipping freight between the US and Mexico. The acquisition will enable Nuvocargo to expand its footprint and support its goal to become a vertically integrated and AI-enabled North American logistics platform.
UPS Acquires Andlauer Healthcare Group for $1.6B. UPS, the world’s largest courier company by revenue, is acquiring Andlauer Healthcare Group (”AHG”). AHG offers specialized cold chain transportation solutions for the healthcare sector. his acquisition is a strategic addition to UPS’s healthcare portfolio, supporting its goal to double healthcare revenue from $10B in 2023 to $20B by 2026.
Who's Hiring? 👩💻
Be sure to check out the Dynamo website for more job opportunities at our portfolio companies!
FP&A & Strategic Finance Analyst at Solvento in Mexico City, MX (Remote).
Insurance Producer at Logrock in Concord, North Carolina (Remote).
Data Scientist at Stord in Atlanta, GA (Remote).