Costs

Costs Are Higher Outside China, Partly Due To Inherent Disadvantages YIELDS AND AUTOMATION ARE INITIALLY LOWER FOR NEW GIGAFACTORIES

EVEN IF A STATEOFTHEART CHINESE FACTORY WAS TRANSPLANTED INTO EU/US, ENERGY AND LABOR COSTS WILL IMPACT ECONOMICS

Higher cost of production outside China is influenced by:

Initially lower yields and factory automation

Differences in energy and labour costs

Higher margins commanded by suppliers

Import tariffs and local premiums on raw materials

Model parameters: ➔ Same yields, factory automation, material margins ➔ No import tariffs or local premiums on materials ➔ Region-average energy prices ➔ CAM and AAM made locally

...all of which can be mitigated!

Source: Content & analysis provided courtesy of CRU Group Distinguished Partner). For more information, visit https://www.crugroup.com.

Extracted from the PDF; charts and images may read imperfectly.