Tesla Team to Visit Indonesia Next Week for Possible Battery Factory & Nickel Supply

Tesla Team to Visit Indonesia Next Week for Possible Battery Factory & Nickel Supply

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The Tesla team is due to visit Indonesia next month to discuss issues regarding potential supply chain investments for the production of electric vehicles, the country's government said in a statement on Saturday.

Tesla will send a delegation to Indonesia to discuss possible further cooperation in the supply of nickel, according to a number of foreign publications. The country's government has repeatedly spoken about negotiations with Tesla. Indonesia aims to make its battery supply chain green in seven to eight years by adding renewable energy sources to some smelters. Thus, they will be able to sell environmentally friendly car batteries in the European market by 2030.

Tesla is committed to reducing its carbon footprint. The company aims to use nickel to store energy in batteries. “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way,” said Tesla CEO Elon Musk during the Q2 2020 Earnings Call. This is what prompted nickel mining companies and some countries around the world to reconsider the process of mining this metal.

It is reported that Indonesian President Joko Widodo and Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan called Musk to discuss Tesla's investment opportunities in Indonesia.

"Tesla would later be directed to build a factory in Batang. Currently, the discussion process between Tesla and the government is still ongoing," said Minister of Industry (Menperin) Agus Gumiwang, Tesmanian reported on October 19.

"Before I end my remarks...I just received a call from Tesla in America, they are also interested in building a lithium battery (factory) in Indonesia," said Luhut on September 9.

Indonesia aims to develop a complete home nickel supply chain. The country is focusing on extracting chemicals from batteries, making batteries, and ultimately making electric vehicles. That is why Indonesia has stopped exporting unprocessed nickel ore, as they wish to support investment in this domestic industry.

Tesla continues to actively explore a possible battery factory in Indonesia while enjoying significant government support, which is an excellent opportunity for the company to grow and develop here.

© 2020, Eva Fox. All rights reserved.


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About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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