Tesla signs $5 billion deals for nickel products from Indonesia

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Tesla is making big moves to secure its battery material supply and has signed multiple contracts with companies worth $5 billion. This was revealed to CNBC Indonesia by a senior cabinet minister.

However, Indonesia is trying to convince Tesla to start manufacturing in the country. One of the baits is nickel, which the Asian country has in abundance. The president, Joko Widodo, met with Tesla boss Elon Musk this year to promote the investment, and the CEO reportedly agreed to the proposal.

Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan revealed the government is still in talks with Tesla for negotiations. However, Tesla has begun buying products from his country.

Pandjaitan also said Tesla had entered a five-year contract with nickel processing companies operating in Morowali, Sulawesi Island. The nickel would end up in Tesla’s lithium EV batteries.

Indonesia is ready to stop exporting nickel to encourage EV companies to start manufacturing in the country. It is going as far as imposing an export tax on metals like nickel.

Last year, the Indonesian National Police added a Tesla Model 3 to its fleet.

Source: Reuters