According to CNBC Indonesia, a top cabinet official said that the American automobile manufacturer Tesla Inc. (NASDAQ:TSLA) has inked contracts with nickel processing firms in Indonesia for the purchase of materials worth around $5 billion to use in the production of their batteries.
The nation with the most significant economy in Southeast Asia has been making efforts to get Tesla Inc. (NASDAQ:TSLA) to establish a production plant in the nation, which possesses significant nickel deposits. Earlier this year, President Joko Widodo held a meeting with Elon Musk, the founder of Tesla Inc. (NASDAQ:TSLA), to discuss increasing investment.
In an interview that aired on Monday, Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan claimed that they are currently in ongoing discussion with Tesla Inc. (NASDAQ:TSLA) but they have begun buying two fantastic items from Indonesia.
According to him, Tesla Inc. (NASDAQ:TSLA) entered into a deal with nickel processing firms based in Morowali on the island of Sulawesi for a period of five years. The lithium batteries developed by Tesla Inc. (NASDAQ:TSLA) will make use of nickel materials.
Lack of Response from Tesla to Reuters
An email sent by Reuters seeking comment was not met with an instant response from Tesla Inc. (NASDAQ:TSLA).
The export of nickel ore was halted in order to guarantee a sufficient supply for potential investors in Indonesia’s electric car and battery sectors, which the country is eager to grow domestically. The approach had been effective in attracting investments from large steel businesses in China as well as South Korean corporations such as LG Electronics Inc. and Hyundai Motor Co.
However, the vast majority of investments in nickel have been made so far in the production of crude metal, such as ferronickel and nickel pig iron.
According to a senior official who spoke with Reuters last week, the government intends to impose an export tax on certain metals in order to increase income while simultaneously promoting greater domestic manufacturing of items with higher values.
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