Tesla Chief Executive Elon Musk will consider Indonesia’s proposal to establish a local electric vehicle battery factory in the nickel-rich country, Reuters reports, citing the coordinating minister of investment.
Indonesian officials propose EV battery plan to CEO Musk
According to the report, Indonesian officials pitched an electric vehicle battery factory to Tesla’s boss on Monday.
The proposal occurred after CEO Elon Musk and President Joko Widodo met on Monday while attending the World Water Forum in Bali, Indonesia.
“We made an offer, is it possible to build an EV battery factory, precursor to cathodes, here. And he said he will consider it.”
Coordinating Maritime Affairs and Investment Luhut Binsar Pandjaitan
Mr. Luhut also tried to convince the Tesla boss to invest in an AI hub development in Indonesia. The Indonesian official also asked CEO Musk for SpaceX to build a launchpad on Biak Island in the province of Papua.
Indonesia’s rich nickel reserves
Indonesia seeks to establish and solidify industries to exploit its rich natural resources, including the largest nickel reserves in the world. Nickel is a critical mineral for electric vehicle batteries and solar panels.
Apart from potential Tesla-related investments, the American billionaire was also reportedly visiting the Indonesia resort island to build a Starlink satellite internet service there.
Government data revealed that Indonesia currently accounts for 40% of the world’s nickel supplies, potentially reaching 75% by 2030.
The Indonesian government aims to produce 600,000 electric vehicles by the same period. It also plans to require domestically produced electric vehicles and key components to have 60% local content by 2027.
Long-standing proposal
The Indonesian government has long tried to court Tesla and Elon Musk for battery investment. It has also been seeking SpaceX’s services, particularly the installation of fast internet access for remote locations of the sprawling archipelago.
The American business tycoon has yet to make formal announcements about potential investments in Indonesia. Nonetheless, CEO Musk hinted that he would consider the local officials’ proposal.
“Well, I think it’s likely that we will be investing. But I think it’s quite likely that my company will invest in Indonesia.”
CEO Elon Musk responded to a journalist’s question on Sunday
SpaceX founder Elon Musk launched a satellite internet service for the country’s health sector on Sunday. Starlink is now commercially available. However, the government plans to initially focus its services on outer and underdeveloped areas.
It would be interesting to see Tesla building a local battery plant for electric vehicles in Indonesia, potentially paving the way for cheaper battery production.
