Central Texas Global Business Pulse - December 8th 2024 - Big Plan

Central Texas Global Business Pulse

Big Plan in China

Founded in 2016, Hisun Group has been at the forefront of research, development, production, and sales of new energy battery materials. Big Plan’s team had the privilege of visiting one of their impressive factories in Guizhou. Witnessing the remarkable level of automation and manufacturing efficiency was truly inspiring. A heartfelt thank you to the Founder & CEO Ms. Hong and her dedicated team for their warm hospitality and for providing us this incredible opportunity.

News & Updates

International

US targets China's chip industry with new restrictions

The United States on Monday launched its third big crackdown in three years on China's semiconductor industry, curbing exports to 140 companies, including chip equipment maker Naura Technology Group (002371.SZ), among other moves.

New US solar tariffs on Southeast Asia to raise prices, cut profit margins

A new round of U.S. solar panel import tariffs on Southeast Asian producers is expected to raise consumer prices and cut into producer profit margins, but was largely anticipated by industry, analysts said.

The new duties announced on Friday by the Commerce Department extend the United States' anti-dumping regime in Southeast Asia to solar cells, from just finished modules previously.

Rattled by China, West scrambles to rejig critical minerals supply chains

China's trade restrictions on strategic minerals are starting to hit Western companies where it hurts.

Blaming Beijing's curbs on antimony exports announced in August, German chemicals and consumer goods heavyweight Henkel (HNKG.DE), told customers last month it had declared force majeure and suspended deliveries of four types of adhesives and lubricants widely used by automakers, according to a Nov. 8 letter to clients reviewed by Reuters.

USA

Stellantis and Samsung Will Get $7 Billion to Build Battery Factories

The Biden administration expanded its efforts to lock in its climate policies on Monday, saying that it would lend almost $7 billion to help build battery factories in Indiana to supply vehicles made by Stellantis, the owner of Jeep, Chrysler, Dodge and Ram.

The financing, which was the second multibillion-dollar loan related to electric-vehicle manufacturing in a week, is part of the administration’s efforts to create domestic supplies of batteries.

General Motors Takes $5 Billion Hit From Ailing China Business

General Motors GM 0.26%increase; green up pointing triangle said it expects to take more than $5 billion in noncash charges in the fourth quarter because of weakness in its China business that will force the automaker to close plants and offer fewer models.

GM on Wednesday said it will write down the value of its stake in partnerships with China’s state-owned SAIC Motor by $2.6 billion to $2.9 billion, or nearly half of their value. The move is in recognition of the company’s dimmer long-term outlook for the business, it said in a securities filing.

TikTok Faces U.S. Ban After Losing Bid to Overturn New Law

TikTok is one step closer to disappearing in the United States after a panel of federal judges on Friday unanimously upheld a new law that could lead to the banning of the popular Chinese-owned video app by mid-January.

The three judges, in the U.S. Court of Appeals for the District of Columbia Circuit, denied TikTok’s petition to overturn the law. The decision could be a death blow for the app in one of its biggest markets. More than 170 million Americans use TikTok to entertain and inform themselves, turning it into a cultural phenomenon. The looming loss of the app in the United States had spurred concern from free speech advocates and from the creators whose income depends on TikTok.

Texas

Two Sigma, Hillhouse Texas Cash at Risk on New China Curbs

When Texas’s largest state pension funds and endowments moved to curb China investments in recent years, they still kept money with big names like Two Sigma Investments LP, Hillhouse Investment, PAG and HongShan Capital Group.

Now a new order for state entities to divest all of their China investments calls into question the ability of those firms to hold on to existing cash or raise fresh capital from the Lone Star State.

Texas could become a major producer of another source of renewable energy

Texas has the potential to become a major producer of green hydrogen due to its existing energy infrastructure, according to researchers.

That infrastructure is making Texas a "valuable case study" in decarbonizing states that currently produce a high volume of fossil fuels, a study published Monday in the Proceedings of the National Academy of Sciences (PNAS) found.

Apollo acquires 50% stake in TotalEnergies’ Texas solar and BESS portfolio

High-growth alternative asset manager Apollo has announced an agreement through its managed funds to acquire a 50% stake in a significant Texas solar and battery energy storage system (BESS) portfolio from TotalEnergies.

This portfolio comprises approximately 2GW of assets within the ERCOT market in Texas.

Austin

Insurance group expanding in Austin to serve private equity, tech companies

A national employee-owned insurance firm is expanding in Austin because of the area’s private equity and technology landscape.

The IMA Financial Group, a national firm with roughly 3,000 employees and 48 U.S. offices, provides insurance for many different industries including health care, manufacturing and construction. However, its local focus will be geared towards private equity and technology companies based in Central Texas, said Justin Jacobs, the executive vice president of marketing for the company.

California-based Colovore eyeing $500M data center in Hutto

A planned $500 million data center at a 118-acre industrial park rising about 30 miles northeast of Austin has been given a green light by the Hutto City Council.

Colovore — a Silicon Valley-based data center operator specializing in liquid-cooled, high-density colocation for artificial intelligence and high-performance computing — won approval from the council on Dec. 5 for a specific use permit for the 180,000-square-foot data center and 13,000-square-foot flex office space.

Station Texas launched as nonprofit model to connect tech startups statewide, nationally

A new nonprofit called Station Texas is spinning out of Austin-based startup accelerator and investor Capital Factory.

Station Texas, initially envisioned in late 2023, will take over community tech and entrepreneurship events previously run by Capital Factory, leaders of the organization announced. Capital Factory will focus on its existing accelerator, coworking and investor activities.

Events

Second Annual Gathering of Central Texas Leaders (Dec 9th 2024)

Bexar County Business Conference 2024 (Dec 11th 2024, 7am - 3pm)

U.S. Mexico Supply Chain Summit in El Paso Texas (March 27, 2025)

Global Diversity Export Initiative (GDEI) Trade Mission to India, Singapore, and Hong Kong (March 2-8, 2025)

Certified WBE, MBE & HUB.

Certified by:

City of Austin, Tx.
State of Texas
National Minority Supplier Development Council

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