Reports have emerged that Tesla has submitted an investment proposal to Indonesia for a possible battery facility in the country. The update was shared in a statement to reporters on Friday by Septian Hario Seto, Indonesia’s deputy head for investment and mining coordination.
Indonesia boasts one of the world’s largest nickel reserves, which happens to be a material that Tesla needs to ramp the production of its 4680 cells. Elon Musk has noted in the past that Tesla is looking to acquire as much nickel as possible and that it would grant a giant contract to any company that could provide the material, provided that the nickel is sourced sustainably.
Being the world’s largest nickel producer, Indonesia has publicly expressed its intentions to attract Tesla. Interestingly enough, Indonesia stopped nickel shipments last year in an effort to develop a full nickel supply chain within the country, starting from extraction and processing to the production of batteries. Tesla, for its part, appears to have expressed its intent to establish a presence in the country.
“I received their proposal yesterday morning… next week we will meet them (virtually) to get an official explanation,” Septian said, adding that the proposal goes beyond just Tesla acquiring nickel from Indonesia. “If they only want to buy raw materials, we are not interested,” the official noted, according to Reuters.
In his statement to the media, Septian stated that he could not provide details of Tesla’s proposal for now due to a nondisclosure agreement with the electric car maker. He did, however, mention that the focus of Indonesia and Tesla’s discussions so far has been on batteries and energy storage solutions. With this in mind, it appears that if Tesla will establish a Gigafactory in Indonesia, it would be focused on batteries and Tesla Energy products like the Powerwall and Megapack.
Back in November, Indonesian President Joko Widodo revealed that he is sending a high-level delegation to meet with the electric car maker’s top executives. The president mentioned that the trip would partly be aimed at promoting Indonesia’s “Omnibus” Job Creation Law, an initiative that harmonizes 79 existing laws. This significantly cuts red tape and allows companies like Tesla to establish a presence in the country without much difficulties.
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