15 May, 2021

Micro-Factories for EV Production

One of the greatest challenges of deploying a vehicle for a new company is the inherent cost of setting up a production line.  We have estimated that were we to do this conventionally, that production line could cost up to US$200 million, and take up to 18 months to set up.  That is a lot of cost and time lost before the first vehicle rolls off the production line. 

When we consider that we are looking to manufacture in nations in the developing world, there is that concern of political risk.  Some government have been known to hold companies to ransom through the withholding or even withdrawal of permits.  That would add to cost, and investor uncertainty.  This adds to infrastructure cost. 

Quantum Motors, the joint venture between Red Sycamore and Quantum Age Holdings Corporation, avoids this risk through the development of micro-factories.  These micro-factories are container deployable, and five units are enough to produce 10 vehicles per day upon deployment.  Deployment is a matter of hours, not months.  This ensures we hit the ground running once we start manufacturing as planned.  Production can be scaled up according to demand, and scaled back to cut cost through the deployment and redeployment of more units. 

Once we have stabilised demand and growth, and grown our ecosystem to mitigate political risk, we can consider development of a larger production line.  In the interim, production does not stop, which is a business advantage.







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