Courtesy of BornInZinnwald on another forum…..One of the largest...

Courtesy of BornInZinnwald on another forum…..

One of the largest one-off investments in the history of the Czech Republic will pay off for the state. Gigafactory from Volkswagen for the production of batteries for electric cars is to cost more than 50 billion crowns. According to a study by the consulting company Deloitte, a factory producing 40 GWh of batteries a year could bring almost 186 billion crowns to the domestic economy between 2023 and 2031 and create 33,000 new jobs in related fields. The gigafactory alone should employ about 2,500 people.

The construction and operation of the planned battery cell factory will bring the Czech Republic billions of crowns in gross domestic product (GDP) and thousands of new jobs. The so-called gigafactory project can positively influence the domestic economy and support the transformation of traditional coal regions, according to a study by the consulting company Deloitte, which was prepared for the Association of Modern Energy.
(CTK) Czech Press Agency


This is the reason I think the ‘offtaker’ will be the Volkswagen battery factory in which CEZ will have a small share (refer CEZ
July presentation) IMO there is no reason the factory won’t take the entire production. A battery OEM like LG could well be a stakeholder in the VW/CEZ consortium. There is local and state government support for this. Negotiations will be complex and no doubt long winded as many factors will need to be considered especially with respect to long term pricing, product quality, delivery penalties etc etc.

As previously stated by KC we need a rock solid agreement ,not just a MOU, to enable the raising of bank finance. Hopefully get some indication by year end.

My thoughts only from reading the various announcements.

Fingers - No problem either if Tesla want some of the action but I think they will have to manufacture in CR to appease the Government.

50 Billion crowns is approx USD2.3B