Indonesia says Tesla aims to make EV battery material investment in the country

Peng Chen, DIGITIMES Asia, Taipei 0


After trying to attract Tesla's investment for a long time, Indonesia seems to have made some progress. Senior minister Luhut Pandjaitan said the EV giant is considering investing in lithium battery materials in the country and will announce the plan in the following months.

Pandjaitan shared the news in an Instagram post on August 14. The minister recently met with Tesla CEO Elon Musk in San Francisco, USA, and learned about the company's plan.

According to Reuters, Pandjaitan said Musk wants to invest in manufacturing battery materials rather than EVs in Indonesia. The investment will be quite big, he added.

Pandjaitan said Musk will visit Indonesia in September or October this year. An announcement is expected to be made in the coming months, Reuters reported. Tesla has not commented on the matter.

Boasting its rich nickel resources, Indonesia has tried to build a local EV supply chain by luring foreign investment. On August 10, the country announced that it will allow automakers to fulfill their commitment of making at least 40% of the content of EVs in the country by 2026 to receive subsidies, extending the deadline for two years.

In his post on Monday, Pandjaitan also said he and Musk discussed the possibility of building an internet network with another of the CEO's companies, Starlink, in eastern Indonesia. Pandjaitan said the infrastructure can improve health and educational services in rural areas.