Key Points
- Tesla Inc signed contracts to purchase Nickel products from Indonesia.
- The deal brings Indonesian producers 74.5 trillion rupiahs (5 billion USD).
- Indonesia hopes Tesla will establish an EV manufacturer within the country.
The American multinational electric carmaker Tesla Inc made a deal worth 74.5 trillion rupiahs with Indonesia. Furthermore, this 5 billion USD worth deal allows Tesla Inc to purchase nickel products from two Indonesian producers.
“The contracts are applicable for five years with two companies operating in the Morowali regency (Central Sulawesi province). The nickel material will be used for Tesla’s lithium batteries,” said Binsar Pandjaitan, Coordinating Minister for Maritime Affairs and Investment Luhut. The minister stated about the deal with Tesla Inc in a virtual discourse.
Indonesia, the leading nickel producer in the world, seeks to compete successfully in the electric vehicle battery industry. According to information from the Ministry of Energy and Mineral Resources, Indonesia possesses an abundance of nickel ore reserves. Accordingly, Indonesia housed 72 million tons of nickel ore deposits in 2020. Additionally, this amount of nickel ore reserves accounted for 52% of the nickel ore distribution around the globe.
In 2021, Indonesia produced 2.47 million tons of nickel. Given the abundance of nickel ore reserves, Indonesia holds a prime position to become a leading electric vehicle battery manufacturer. Indonesia constantly approaches Tesla Inc with hopes of establishing an electric car and battery factory within the country. Similarly, Indonesia also appeals to prominent Asian companies, including LG Energy Solutions, Hyundai Motor Group, and CATL.
Reference,
https://english.news.cn/asiapacific/20220808/c3497e8fcd5b430ab73c10316eab30aa/c.html
