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Tesla could install its own nickel extraction and treatment factory in Indonesia

Tesla could be about to close a major deal with the Indonesian government in order to set up a new nickel extraction and treatment factory there, as well as other specific supplies for electric car batteries. Elon Musk has met in recent days with Joko Widodo, the Indonesian president, where they could have discussed various issues prior to the announcement of the location that will take place there.

It is certainly not the first time that Tesla has focused on Indonesia, since there is an important nickel reserve there. We already know that this material is experiencing a significant rise in its prices, as well as a lack of supply of it by various companies specialized in its treatment. Precisely for this reason, Tesla’s management has been exploring alternatives for some time and they seek to be their own supplier of this material through new extraction and treatment factories, both for this and for other materials of substantial importance.

This decision was based on the fact that Tesla needed more and better quality material during the past summer of 2020. From there, the board made the decision that they could start doing things from the company itself. In fact, that same year, Tesla already began the first talks with the Indonesian country in order to build a new company dedicated to the treatment of nickel in this region.

In return for Elon Musk and his associates, Indonesia recently banned the export of nickel mined there with an eye on encouraging the industry itself to process it locally and thus create jobs in the country. That is why firms such as LG Energy Solution and CATL have already added significant financial amounts as an investment to carry out a good part of their activity there with new battery production factories. At the same time, these two important companies are suppliers of components for Tesla.

However, apparently Tesla would be looking to face his own path on Indonesian lands and Elon Musk has held important meetings with the president of the country, as well as the company’s own board of directors has done the same with various responsible officials. The first clues came last week, when the CEO of Tesla was asked about his future plans on these lands and whether or not he planned to open a battery or cathode factory in Indonesia. The manager refused to answer this question.

Now through the middle Reuters It has been published that, parallel to that round of questions to Elon Musk, different company officials were holding a meeting with Indonesian government officials to draw up the rules of the agreement between the two levels, according to various officials in the region, as well as two people familiar with these conversations.

last weekend, Elon Musk and Joko Widodo held a meeting so that the Indonesian executive knew the facilities that the company owns in Texas, as well as SpaceX’s own facilities in Boca Chica. Once this meeting concluded, both agreed to maintain contact and close all relevant agreements. Elon Musk will presumably announce the new locations for his battery factories later this year.

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