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Tesla may be about to open a plant in Indonesia – report

Indonesia could soon be home to a Tesla facility, with the nickel-rich country reviewing a business proposal from the company.


The Indonesian Government is reviewing a business proposal from Tesla, it has been revealed.

According to a report from news outlet Reuters, US electric car maker Tesla put forward the investment proposal ahead of a planned meeting with Indonesian officials this week.

Indonesia is the world's biggest nickel producer – a vital component in many electric vehicle batteries.

Another key component is lithium, of which Australia is the world's largest producer. In September 2020, Tesla signed a supply deal with local lithium miner Piedmont Lithium, which could last up to a decade.

"I received their proposal yesterday morning... next week we will meet them (virtually) to get an official explanation," Indonesia's deputy head for investment and mining coordination, Septian Hario Seto, told media on Friday.

"If they only want to buy raw materials, we are not interested. This [proposal] is beyond just taking the raw material," he added.

Indonesia began work on a more comprehensive nickel supply chain in 2020, in an effort to better serve the growing demand of electric vehicles.

In May 2020, Tesla filed a patent application for a 'one million mile' lithium-ion battery, which uses nickel-cobalt-aluminium electrodes. The US electric car company is aiming to get its batteries down to under US$100 (AU$130) per kWh.


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Ben Zachariah

Ben Zachariah is an experienced writer and motoring journalist from Melbourne, having worked in the automotive industry for more than two decades. Ben began writing professionally more than 15 years ago and was previously an interstate truck driver. He completed his MBA in Finance in early 2021 and is considered an expert on classic car investment.

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