Tesla is always looking to build the next gigafactory, and South Korea is one of the most likely destinations. The Asian country’s municipal governments are already angling to be the host after Tesla revealed its plans to site another production plant in Asia.
South Korea is a strong contender thanks to being home to some of the biggest EV battery and cell makers like LG Energy Solution and L&F Co. Another advantage is the country has free trade agreements with Tesla’s main markets, meaning export tariffs will be at a minimum.
The country’s Ministry of Trade, Industry, and Energy has concluded gathering information on potential sites from all 17 leading local authorities, as reported by The Korean Economic Daily. The data will be forwarded to Tesla before the year ends.
The local government authorities are luring Tesla to make their regions more competitive. In addition, a Tesla gigafactory will likely attract more high-profile investments from the global business community.
The regions have been touting their edge, including closeness to ports, abundant power supply, steel makers, battery manufacturers, etc.
Tesla currently runs two gigafactories in the US and one each in Germany and China. Hosting a gigafactory has become a race between countries and states, competing with incentives such as tax breaks.
Meanwhile, Indonesia is another candidate, with CEO Elon Musk meeting President Joko Widodo and signing a $5 billion deal for nickel supply. The EV is also reportedly considering a manufacturing center in Mexico.