Tesla mulls Indonesia electric car parts factory

Musk teams to visit Southeast Asian nation to check on investment in EV components

Tesla mulls Indonesia electric car parts factory
Musk spoke to Luhut Pandjaitan, the coordinating minister for maritime and investment. Photo: Reuters

JAKARTA: 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. Additional reporting by Stanley Widianto

Indonesia asia EVs Tesla