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Message: Janestown

Well I need to correct a couple of things.  First they switched on me from fiscal quarter to calendar quarter for the start up dates.

I would expect us to have final assembly up and running in Jamestown first, and we are targeting start of operations during the first half of calendar year 2023.

Then I got the incentives wrong.  Bleow is from conference call.

Dr. Raj DasGupta

Us reshoring and vertically integrating the cell production is going to have a very positive impact on our overall gross margins. So, if you think about it, the cells, they are our single largest cost center. And by bringing that in-house, we're going to automatically increase our margins by the factor that our contract manufacturer currently takes. We're also going to reduce significantly our shipping and logistics costs from Asia. And then thirdly, which was a nice surprise is the Inflation Reduction Act offers significant incentives for cell and module production.

So, this looks like a $35 per kilowatt hour incentive for cells and another $10 per kilowatt hour incentive for modules. So, it's a significant benefit for reshoring. But I'd like to also point out, we would have gone ahead with this vertical integration, despite the Inflation Reduction Act.

 

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