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Tesla Mulls Sourcing Nickel for its EVs from Indonesia

US carmaker Tesla will send delegations to Indonesia next month to discuss potential investment in the supply chain for its electric vehicles, the government said


Tesla founder and CEO Elon Musk is looking to source nickel from Indonesia, but says he wants the mining to be done in an environmentally sensitive way. Reuters file photo.

 

Tesla, the US automaker, will send delegations to Indonesia next month to discuss potential investment in a supply chain for its electric vehicles, the government said.

President Joko Widodo has touted Indonesia’s nickel reserves on a number of occasions, saying last month that “it’s very important because we have a great plan to make Indonesia the biggest producer of lithium batteries and we have the biggest nickel (reserves)”.

The president and Luhut Pandjaitan, the coordinating minister for maritime and investment, were on a call with Tesla CEO Elon Musk on Friday to discuss “investment opportunities from electric vehicles company Tesla in Indonesia,” the ministry said.

Tesla did not immediately respond to a request for comment.

Luhut said last month that “there is a really good chance” that companies will want to invest in Indonesian nickel processing to cut costs.

Musk has said he is planning to offer a ‘giant contract for a long period of time” so long as the nickel is mined “efficiently and in an environmentally sensitive way”.

Indonesia is keen to develop a full supply chain for nickel at home, especially for extracting battery chemicals, making batteries and eventually building EVs.

 

• Reuters, with additional reporting by Stanley Widianto

This page was updated on Jan 13, 2022 for style purposes.

 

 

Mark McCord

Mark McCord is a financial journalist with more than three decades experience writing and editing at global news wires including Bloomberg and AFP, as well as daily newspapers in Hong Kong, Sydney and Melbourne. He has covered some of the biggest breaking news events in recent years including the Enron scandal, the New York terrorist attacks and the Iraq War. He is based in the UK. You can tweet to Mark at @MarkMcC64371550.

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