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Tesla inches toward Gigafactory Indonesia with preliminary deal in place

Credit: Anindya Bakrie/Instagram

Tesla is inching toward establishing Gigafactory Indonesia as a preliminary deal is nearly in place.

According to Bloomberg, Tesla is nearing the agreement of terms to build a one million-unit annual production vehicle manufacturing plant in Indonesia. The report cited people familiar with the matter.

However, Indonesian investment minister Bahlil Lahadalia confirmed that the country is in contact with Tesla, and the two parties are discussing a potential deal.

Tesla has four active automotive production plants: One in Fremont, California; one in Austin, Texas; another in Brandenburg, Germany; and another in Shanghai, China. Rumors have spread about Tesla’s potential commitment to another Gigafactory internationally, with Canada and Mexico leading the charge.

A look at Tesla’s potential new Gigafactory locations: Mexico, Canada, Indonesia or South Korea

Indonesia has also been discussed on several occasions with Tesla’s next Gigafactory. Indonesian President Joko “Jokowi” Widodo has been attempting to woo Tesla and its CEO Elon Musk to commit to a new factory in the country. Last year, he offered a proposal that included a vehicle production facility that would be capable of half a million vehicles annually and a battery manufacturing plant.

Last year, Tesla also hosted Indonesian government officials at Gigafactory Texas to discuss raw material supply deals for nickel, a highly-utilized metal in the production of electric vehicle batteries.

Tesla has not committed to any specific market for its next Gigafactory. Musk said he hoped to announce the location of the next production facility by the end of 2022, and with rumors that Mexico was heavily favored to be the chosen location, Tesla never officially committed to the plans.

Adding another Gigafactory in Asia would help supply vehicles to various markets, including Europe, as Tesla has utilized the Shanghai Gigafactory as an export hub for over a year.

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Tesla inches toward Gigafactory Indonesia with preliminary deal in place
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