Nickel producer Indonesia received EV batteries investment proposal from Tesla

The US automaker, Tesla, is making prominent jumps in ASEAN countries. The company has sent its delegation to Indonesia to discuss the potential of creating an EV battery supply chain for its electric vehicles.

The Deputy Head of Investment and Mining Coordination, Septian Hario Seto, confirmed Tesla's proposal in a news briefing, reported by Reuters. Tesla’s discussion with Indonesia will have a prime focus on batteries and energy storage solutions.

“Indonesia is looking forward to joining hands with Tesla for its striking recognition in the world for its lithium battery technology”, added Seto. “This is an opportunity to team up with the world-class company that fosters the transfer of advanced technology.”

The collaboration over energy storage solutions will enable the creation of batteries of up to 10 mW. However, the deputy head further clarified that if the requirement is the only raw material, the country will not be interested in the deal.

Indonesia, with its largest nickel reserve accounting for 23% of the world’s total, is a promising scope for Tesla. It offers a win-win situation if both sides enter into an agreement. The country offers what the EV maker already wants in order to secure from the market. On the other side, investments from the leading EV manufacturer can bring up the country as a key performer in the world’s electric vehicle market.

Indonesia, the world’s top nickel exporter has already discontinued the selling of raw material and instead has plans to develop a full nickel chain supply itself. In fact, the country’s lucrative prospect in the reserves has already skyrocketed its share price in the past few months.

It has also welcomed the initiatives from Tesla that can help progress the country with its EV and battery-related industrial plans. On Tesla’s part, the Model S maker reported last year that the company is searching for reliable nickel resources globally.

President Joko Widodo informed Reuters that the automaker has plans to make Indonesia a giant producer of lithium batteries, thanks to the massive nickel reserves.

Moreover, the country has made a pact with Hyundai, which will start manufacturing EVs sometime in 2022. It has also initiated talks with China's Contemporary Amperex Technology and South Korea's LG Chem regarding creating a nickel supply chain.

Lastly, there are many ambitious projects to encourage EV and bring in EV related investments in the country.

Also read: Tesla’s U-shaped steering wheel is legal in the UK, confirms DFT