Tesla agrees to pay $5 billion for Indonesian minerals

Robert Besser
11 Aug 2022, 21:38 GMT+10

U.S. carmaker Tesla has signed contracts worth some $5 billion to purchase minerals for electric batteries from nickel processing companies in the country
Indonesia, which is Southeast Asia's largest economy, has major nickel reserves and has, in the past, sought to convince Tesla to establish a production facility in the country
Earlier this year, Indonesian President Joko Widodo met with Tesla founder Elon Musk to encourage him to invest in the country

JAKARTA, Indonesia: A senior cabinet minister in Indonesia has told CNBC Indonesia that U.S. carmaker Tesla has signed contracts worth some $5 billion to purchase minerals for electric batteries from nickel processing companies in the country.

Indonesia, which is Southeast Asia's largest economy, has major nickel reserves and has, in the past, sought to convince Tesla to establish a production facility in the country. Earlier this year, Indonesian President Joko Widodo met with Tesla founder Elon Musk to encourage him to invest in the country.

In an interview this week, Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan said, "We are still in constant negotiation with Tesla, but they have started buying two excellent products from Indonesia."

"Tesla signed a five-year contract with nickel processing companies operating out of Morowali in Sulawesi island. The nickel materials will be used in Tesla's lithium batteries," he added.

As Indonesia aims to develop locally assembled electric vehicles and develop battery industries, it halted exports of nickel ore to ensure supplies for investors, which successfully attracted investments from South Korean companies, such as LG and Hyundai, and Chinese steel giants.

Most of the country's nickel investment has been used for the production of crude metals, such as nickel pig iron and ferronickel. The government plans to impose export taxes on these metals to boost revenues, as well as encourage more domestic production of higher-value products, a senior official told Reuters last week.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Nepal National.

More Information

21 ℃

Mostly Cloudy in Kathmandu

Business

Section

Trial starts in California of Tesla Model 3 Autopilot fatality

RIVERSIDE COUNTY, California: In his opening statement this week in the first U.S. trial over allegations that a car autopilot ...

FTC takes Amazon to court for monopolizing online marketspace

SEATTLE, Washington: As part of Washington's efforts to stop Big Tech from monopolizing the most lucrative parts of the internet, ...

Saudia Arabia welcomes EV maker Lucid's first international factory

JEDDAH, Saudi Arabia: As part of Riyadh's efforts to further Saudi Arabia's electrification drive, electric vehicle (EV) maker Lucid announced ...

U.S. stock markets finish Friday mixed over Congress mayhem

NEW YORK, New York - Stock prices were punctured Friday bringing to an end the 'flash in the pan' rally ...

Fire risks force Hyundai, Kia to recall 3.37 million vehicles in US

WASHINGTON D.C. Due to internal brake fluid leaks that can cause an electrical short and could lead to engine fires, ...

US adds three Chinese companies to entities using Uyghur forced labor

WASHINGTON D.C. As part of its efforts to remove goods made by Uyghur forced labor from the U.S. supply chain, ...

Southeast Asia

Section