Indonesia says Tesla strikes $5 billion deal to buy nickel products

Tesla vehicles are seen parked on the development website of the brand new Tesla Gigafactory for electrical vehicles in Gruenheide, Germany, March 20, 2022. REUTERS/Hannibal Hanschke/

JAKARTA, Aug 8 (Reuters) – U.S. carmaker Tesla (TSLA.O) has signed contracts value about $5 billion to purchase supplies for his or her batteries from nickel processing corporations in Indonesia, a senior cupboard minister instructed CNBC Indonesia.

Southeast Asia’s greatest financial system has been attempting to get Tesla to arrange a manufacturing facility within the nation, which has main nickel reserves. President Joko Widodo met with Tesla founder Elon Musk earlier this yr to drum up funding. learn extra

“We’re nonetheless in fixed negotiation with Tesla … however they’ve began shopping for two wonderful merchandise from Indonesia,” Coordinating Minister for Maritime and Funding Affairs Luhut Pandjaitan stated in an interview broadcast on Monday.

He stated Tesla signed a five-year contract with nickel processing corporations working out of Morowali in Sulawesi island. The nickel supplies might be utilized in Tesla’s lithium batteries.

Tesla didn’t instantly reply to a Reuters e mail searching for remark.

Indonesia is eager to develop electrical automobiles and batteries industries at dwelling and had stopped exports of nickel ore to make sure provide for buyers. The transfer had efficiently attracted investments from Chinese language metal giants and South Korean corporations like LG and Hyundai.

Nevertheless, most nickel funding to this point have gone to manufacturing of crude steel corresponding to nickel pig iron and ferronickel.

The federal government plans to impose export tax on these metals to spice up income whereas encouraging extra home manufacturing of higher-value merchandise, a senior official instructed Reuters final week.

Reporting by Fransiska Nangoy; Modifying by Kanupriya Kapoor

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