MNS 0.00% 4.2¢ magnis energy technologies ltd

Ann: New York Gigafactory Progress, page-120

  1. 2,013 Posts.
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    IMO it is very unlikely that to increase production the CAPEX would remain the same for each GWh you expand. My thoughts:
    • Equipment used in the 1GWh setup may be capable of higher throughput. For example a single B&W Megtec Gigacoater can do 3GWh a year.
    • Additional equipment leased or purchased to increase capacity will be discounted due to existing business relationships and number of products onsite.
    • As time goes on machines become more efficient with a higher output in the same footprint. As the facility grows the new machinery will become more capable (and likely cheaper based on output)
    • There would be certain initial build items that would require limited spend during an upgrade to 3GWh. Possibly things like control systems, networking, lunch/tea rooms, bathroom facilities (depending on shifts etc)
    • There would be things that would only need to be built or established once during the initial 1GWh fit-out. Alarm system, training and procedure manuals, licenses, approvals, HR systems, Online presence etc
    • Typically when you scale up things become cheaper. (Economies of scale)
    I'm sure there is more than the above but it seems pretty obvious to me that to scale up isn't going to cost exactly the same for each GWh of capacity.

    @spid81 How accurate do you think your assumption is that for each GWh of production capacity it will cost US$53M? Are you basing this on anything apart from a basic calculation?
 
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