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Indonesia: Tesla plans to build a battery material factory, but has no intention of building an automobile factory

2025-03-29 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >

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Shulou(Shulou.com)11/24 Report--

Tesla will announce the construction of a new battery material factory in the country, Indonesian officials said on Monday.

It is reported that Indonesia is rich in oil, natural gas and coal, tin, bauxite, nickel, copper, gold, silver and other mineral resources, while nickel reserves account for 22% of the world.

Nickel is a key material for the production of electric car batteries, and Indonesia is keen to develop a complete nickel supply chain at home, especially to refine battery chemicals, make batteries and eventually make electric cars. It is reported that Indonesia has been actively promoting investment in domestic batteries and electric vehicles to take advantage of its rich nickel resources.

For years, Indonesia has been fighting for Tesla to invest in battery and car manufacturing in the country, trying to take advantage of its rich nickel reserves.

As early as July 2019, it was rumored that Tesla was seeking to build a battery factory in the Morowali Industrial Park (IMIP) in Indonesia's Central Sulawesi province.

In October 2020, foreign media reported that Tesla and the Indonesian government were having preliminary discussions on potential investment in Indonesia. In late October 2020, Indonesian Industry Minister Agus Gumiwang said in a statement that talks with Tesla on building a battery factory in Batang were under way.

In April 2022, Tesla met with Indonesian officials to discuss potential nickel deals. In May 2022, Indonesian Investment Minister Bahlil Lahadalia said Tesla agreed to build a battery and electric car factory in Indonesia. But at that time, he could not formally announce the news because Tesla had not yet signed the agreement.

In January, Indonesia's senior minister, Luhut Pandjaitan, said Indonesia was finalizing agreements with carmakers such as BYD, Tesla and Hyundai to invest in electric vehicle production plants in the country.

Recently, Pandjaitan met with Musk in San Francisco and shared the meeting on Instagram to understand the obstacles to Tesla's investment in Indonesia.

Mr Musk wants to invest in battery materials in Indonesia rather than electric cars, which will be significant, Pandjaitan said. He pointed out that Tesla does not plan to build a car factory in Indonesia.

In addition, Pandjaitan said Mr Musk confirmed that Tesla wanted to build a battery material factory and hinted that the announcement would be made in the coming months. He also said that Musk will visit Indonesia in September or October this year.

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