Panasonic's Market Share May Rise With CATL's Addition To The 'Barred List'

2025-01-15 04:53:34 ET

Summary

• CATL, the largest battery maker in the world, has been added to the US military black list, highlighting a significant future TAM hole potential for growth for competition.
• Despite being considered "dirt cheap," Panasonic's valuation may remain low indefinitely, posing a risk for investors.
• Growth optimism is fueled by positive developments from Panasonic, with new growth investment also going into Data Center power pack storage and circuit board components.
• The recent rescinding of the ADR adds complexity to the investment, requiring careful consideration by retail investors. It now only trades under tickers PCRFF and an unsponsored ADR PCRHY.

CATL, the largest battery maker has been added to the list

Following up on my last article regarding Panasonic Holdings Corporation ( PCRFF )( PCRHY ), the primary catalyst that I noted to be falling right into Panasonic's hands was tariffs and regulations with respect to Chinese battery cells. This was back in May of 2024 when a 25% tariff rate was increased from a previous 7.5% rate. Now we have even bigger news that will discourage EV and Li-Ion battery users against sourcing from the Chinese supply chain. Fresh off the press from January 6th, 2025:

CATL has been added to the list of companies that have been labeled as having ties to the Chinese military : ...

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