Indonesia is set to start exporting nickel-based materials for electric vehicle batteries to the United States in November. Energy Minister Bahlil Lahadalia announced that the preliminary products essential for battery production would be shipped from Weda Bay to Tesla, though specific quantities were not disclosed.
According to Reuters, Minister Lahadalia stated, “We will export precursor to the U.S. by next month to Tesla from Weda Bay. ” This development follows reports from the summer of 2022 when a senior Indonesian cabinet minister indicated that Tesla had signed contracts worth approximately $5 billion to purchase materials from Indonesian nickel-processing companies. At that time, Tesla did not respond to inquiries about the agreements and has also declined to comment on the current announcement.
Indonesia, rich in nickel deposits, strives to expand its domestic processing capabilities by establishing battery factories and electric vehicle manufacturing plants. To support its growing industry, the country has temporarily halted the export of nickel ore to ensure adequate supply for local development.
This strategic focus has attracted significant international investment in Indonesia’s e-mobility sector. Earlier this year, Hyundai and LG Energy Solution inaugurated a battery cell factory in the country, complementing Hyundai’s vehicle manufacturing plant opened in 2022. Additionally, automotive giants like Toyota and BYD intend to produce electric vehicles locally. Recently, a subsidiary of China’s CATL formed a joint venture with the state-owned Indonesia Battery Corporation (IBC) to advance battery cell production initiatives.
While there have been longstanding rumors of Tesla’s interest in establishing a manufacturing facility in Indonesia, no concrete plans have materialized to date.
Source: Reuters
