Tesla Signed Contract To Buy Indonesia’s Nickel Products Worth Five Billion USD

JAKARTA, U.S. electric carmaker, Tesla Inc., signed a deal worth 74.5 trillion rupiahs (five billion U.S. dollars), to buy nickel products from two Indonesian producers, a minister said yesterday.

“The contracts are applicable for five years, with two companies operating in the Morowali regency (Central Sulawesi province). The nickel materials will be used for Tesla’s lithium batteries,” Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said.

Indonesia, one of the world’s largest nickel producers, is seeking a leading role in EV battery industries. The country has been wooing Tesla to invest in the nickel industry and supply of EV batteries in Indonesia.

As of Jan, 2020, Indonesia had 72 million tonnes of nickel ore reserves, according to data from the Ministry of Energy and Mineral Resources.

That accounted for 52 percent of the total amount of nickel ore around the world. The country’s nickel production reached 2.47 million tonnes in 2021.

Pandjaitan said, the Indonesian government would keep approaching Tesla, hoping the company would establish an EV manufacturer in the country.

“We’re still in an ongoing negotiation with Tesla,” he said.

Source: Nam News Network