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Costs Are Higher Outside China, Partly Due To Inherent Disadvantages YIELDS AND AUTOMATION ARE INITIALLY LOWER FOR NEW GIGAFACTORIES
EVEN IF A STATE-OF-THE-ART 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.
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