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From: LTGoldBull21/15/2016 9:48:29 AM
14 Recommendations  Read Replies (2) of 54991
 
Tesla Worldview 14 Jan 2016

Seem they still stand by local supply chain development for the Vertical Integration Model in reducing costs through mass production of the LiB Battery. Cheers, Mark

“[In Japan] there are multiple suppliers feeding into multiple facilities, in order to deliver a finished product. They are doing so in a geography where some of the input costs are quite high — electricity, labour, some of the raw materials — so simply by bringing together multiple operations into one facility, a facility where logistics, labor, utility inputs and other factors of production are cost-advantaged, you’re going to make significant improvements there. With the Gigafactory, we’re now going that final step where, in partnership with Panasonic, we are making that cell together in a single factory.”

In the world of Tesla, that sort of vertical integration model is just common sense. He thinks when Tesla opens factories in other countries, it will source most of the parts and materials it needs from within those countries. That includes the batteries. “We will develop local supply chains,” he said. “So if we have a factory in Europe, more of the components will come from European suppliers. So too in China or in Japan. If we’re producing vehicles in a market, it’s just logical we would be sourcing more from that market. There will be multiple Gigafactories as there are multiple car factories.”

cleantechnica.com
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