Carbon fiber is a high strength-to-weight ratio material manufactured principally from acrylonitrile, which is increasingly being used in a variety of applications, including recreational products, automobiles, aircraft, wind turbines, and gas pressure vessels. Manufacturing costs can vary between $10 and $25 per kilogram for industrial grades of carbon fiber, and they largely depend on the type and quality of fiber produced (Das et al. 2016). Cumulative demand for carbon fiber has been projected to grow 10% per year between 2015 and 2024 (Sloan 2015a; see Figure ES-1). Figure ES-1. Projected demand for carbon fiber, by selected industrial application (metric tons) Data are from Sloan 2015a. This report is a follow-on report to CEMAC's initial analysis of the competitiveness of the global carbon fiber composites supply chain. That report (Das et al. 2016) provided an analysis of carbon fiber and carbon fiber polymer composites supply, demand, markets, and manufacturing costs. This report focuses on carbon fiber manufacturing siting and policy considerations. The current global carbon fiber manufacturing industry is predominately located in the United States, Japan, Europe, and China (Figure ES-2). Figure ES-2. Location of carbon fiber manufacturing capacity worldwide Source: Das 2016 Manufacturing facilities for carbon fiber and associated products can offer significant economic development and employment opportunities. For example, Toray has committed to a $1 billion 0