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Tesla is looking to build a lithium battery raw material factory in Indonesia, claims report

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A recent report from one of Indonesia’s oldest news agencies has stated that American electric car maker Tesla is looking to build a lithium battery raw material factory in the Morowali Industrial Park (IMIP) area, located in the Central Sulawesi province, Indonesia. 

The update comes amidst the recent comments of Maritime Affairs Coordinating Minister Luhut Binsar Pandjaitan, who named Tesla as one of the companies that are reportedly looking to build battery facilities in the region. Speaking at the Presidential Palace in Jakarta on Tuesday, Pandjaitan mentioned that Contemporary Amperex Technology (CATL) and LG would also be operating their own facilities in the Morowali area. 

Provided that the facility does break ground, Tesla’s lithium battery raw material factory in Indonesia will reportedly be aiming for completion in around three years. 

While Tesla is yet to announce or confirm the reports from the Indonesian media outlet, the country’s government is already preparing to welcome the arrival of the massive battery companies, including the Silicon Valley-based electric car maker. Pandjaitan, for his part, claimed that a Presidential Regulation (Perpres) for Electric Vehicles would soon be signed by Indonesian President Joko Widodo. 

“It was completed. The president may sign the perpres (presidential decree) in the next few days,” the Maritime Affairs Coordinating Minister said, according to Antara News.  

Once signed, companies such as CATL, LG, and Tesla will be able to avail of several incentives. Among these is the elimination or reduction of taxes, as well as the exemption of import duties related to the needs of the companies’ operations. 

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Antara is one of Indonesia’s oldest news agencies. Founded in 1937 while the country was still a Dutch colony, Antara has emerged as the country’s national news agency. It is also the only agency authorized by the State to distribute news materials created by foreign media organizations. With this in mind, the reports of Tesla’s interest in Indonesia’s Morowali area are, at the very least, being related by one of the country’s most legitimate media organizations. 

Tesla has expressed its intention to develop and produce its own battery cells. During the 2019 Annual Shareholder Meeting, Tesla CTO JB Straubel and VP for Technology Drew Baglino, together with CEO Elon Musk, spoke about the company’s need to secure large-scale battery cell production. Musk even commented that Tesla could end up in the mining business to acquire the necessary materials for its vehicles’ and energy storage products’ cells. 

Reports from CNBC last month have also suggested that Tesla is already in the process of designing its own battery cells at a “skunkworks lab” located in the company’s Kato Road facility, just a few minutes from the Fremont, CA factory. According to the publication’s sources, Tesla is currently researching ways to make its batteries better, and coming up with ways to mass-produce the cells in a faster, more efficient manner.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Semi catches fire in California: what we know

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Credit: KTVU

A Tesla Semi caught fire in Hayward, California, which caused both directions of traffic to shut down for hours before being completely reopened early on Wednesday, the California Highway Patrol said.

The fire occurred just after 5:30 local time in Hayward on Tuesday, as the Semi caught fire in the southbound lanes of I-880 before CHP officials made the decision to shut down both lanes of traffic due to potential risks from hazardous chemical smoke.

There were no injuries reported.

The cause of the fire is currently unknown, as neither Tesla nor the CHP have not determined a cause.

However, some images taken before the Semi was completely destroyed by the fire seem to indicate this might have been an older unit, as it appears to be one of the designs that Tesla shipped as part of its pilot program, before revising it and starting mass production just a month ago.

At the time of publication, CHP had not returned our request for a comment for additional details, including the Semi involved and any potential collaboration on an investigation between the CHP and Tesla. We will update this story when we hear back from them.

The southbound lanes were reopened at 3:30 a.m. on Wednesday, with the northbound lanes opening last night a few hours after the fire began. The CHP did state that the lithium batteries were “incredibly difficult to extinguish,” according to NBC Bay Area.

The truck’s driver said that the Semi caught fire, but he did not have an explanation.

An estimated 5,000 to 7,000 semi-truck and large commercial vehicle fires occur on U.S. roadways every year.

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Tesla’s ‘Emergency Drive Away’ function gets its first use in the real world

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Credit: Tesla

Tesla’s launch of the “Emergency Drive Away” function a few months back offered owners a safe option to evacuate an area if they were in reasonable danger. The function finally got its first use in the real world, but it appears it was by mistake.

A video shared by u/Joshalander in the r/TeslaLounge subreddit recorded the instance from his vehicle and said the incident took place in Austin this past weekend during the city’s F1 Race.

“Was charging around 6 AM this past Sunday in Austin before heading to the F1 race and heard a pop. Looked over and saw the new emergency drive-away feature in action. Genuinely felt bad for the dude when he got out and realized what happened, since he looked exhausted and only seemed to half-read the prompts.”

Emergency Drive Away unlatches the Supercharger connector from the vehicle, but still causes damage to both the car and the Supercharger. Tesla has said that it will cost up to $25,000 in repairs to have everything fixed back to normal.

Additionally, the company said that if it were not used in an emergency situation, the driver of the vehicle who activated the Emergency Drive Away feature would be responsible for all repair costs.

Tesla constitutes the following situations as reasonable justifications for activating the feature:

  • You face an immediate threat to your life or personal safety.
  • You must leave the area immediately.
  • Exiting the vehicle is unsafe.
  • Unplugging the charge connector would unreasonably delay your departure or expose you to a risk to your personal safety.

After using the feature, Tesla requires the driver to schedule Service so the car can be inspected.

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Tesla’s Cybercab battery design could make robotaxis even cheaper

Tesla built the Cybercab’s battery pack with spare room for a future switch to LFP.

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Tesla built the Cybercab’s battery pack with empty space inside it on purpose, and the reason points to a cheaper robotaxi down the road.

Robert Sumpf, Tesla’s director of mechanical design engineering for battery modules and packs, said the extra room beside and beneath the Cybercab’s modules was left there so the company can move to lithium iron phosphate cells later. “So, we protected this pack to go to an even lower energy dense chemistry as we scale and need to bring LFP into the platform,” Sumpf said in a Cybercab deep dive with Munro Live.

The Cybercab runs on Tesla’s own 4680 cells with a nickel chemistry today. LFP cells store less energy for their size, so a straight swap would cut range. The reserved space lets Tesla add more LFP cells to make up the difference. In return, Tesla would get cells that cost less, run cooler and survive more charge cycles. LFP became the most used EV battery chemistry in the world last year.

Not all of that room was planned for a chemistry change. Lars Moravy, Tesla’s Vice President of Vehicle Engineering, said part of it exists because “we didn’t need as many batteries as we thought we did.” Tesla told Sandy Munro in early 2025 that it was targeting a Cybercab pack under 50 kWh with close to 300 miles of range.

The pack also breaks from the structural design Tesla used in some Model Y and Cybertruck builds. Instead of potting hundreds of cells into one block, the Cybercab uses four separate, individually sealed modules, so a bad module can be replaced without scrapping the whole pack. Sumpf was blunt about the older approach, giving the Model Y structural battery “a grade D” because it was hard to build and nearly impossible to repair. He estimated a fully structural pack gains about 10% more cell volume, but said “the issue is the service cost.”

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That cost matters more for a car that rarely sits parked. Cybercab chief engineer Eric Earley said replacing an entire pack “before half a million miles is a killer on cost,” which is why remanufacturing and serviceability were built into the design from the start.

The same Munro Live tour produced Moravy’s admission that the Cybercab line at Giga Texas is now outpacing Robotaxi deployments, along with a look at the robotaxi’s unorthodox paint process. Tesla is aiming to deliver the first Cybercabs to outside customers by the end of 2026, though Elon Musk has said the vast majority will stay owned by Tesla and run as a transport service.

Sumpf did not give a date for an LFP version, name a cell supplier or say how a chemistry change would affect range. For now, the 4680 cars keep piling up: Texas DMV records from Tuesday list 544 Cybercabs authorized for Tesla’s Robotaxi fleet, more than the 507 Model Ys on the same roster for the first time.

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