Report: Nickel-rich Indonesia wants to become the world’s largest battery manufacturer with Tesla

According to market researchers, the race for market leadership in the manufacture of battery cells – the basic building blocks for a future with electric cars and renewable electricity – will be held between China, the USA and Europe. So far, the Chinese are way ahead – but according to an agency report, another Asian country, Indonesia, has decided to overtake the three blocks and become the largest cell manufacturer in the world. The country’s nickel wealth should help here, because according to Tesla CEO Elon Musk, this battery raw material is one of the greatest shortages.

Minister should meet Tesla managers

A senior government team will be sent out next week to meet top Tesla executives; the President of Indonesia announced that, the Reuters news agency reported on Friday. The Southeast Asian country wants to become the world’s largest producer of batteries for electric cars. The trip to Tesla and other companies is taking place as part of the promotion of a new law to encourage job creation in Indonesia. A “big team” will travel to the USA and Japan, said the president.

According to Reuters, the delegation will be led by the Minister for Investments, who will personally meet Tesla executives. The minister did not want to comment specifically on Tesla, but said in general that there was “a very good chance” that companies would want to invest in nickel processing in Indonesia. In fact, Tesla CEO Musk publicly called on producers of the raw material this summer to win more of it and promised high-volume contracts for it.

Indonesia wants to become more ecological

Musk named the conditions that the mining should be efficient (i.e. affordable) and environmentally friendly. According to Reuters, the investment minister has now said: The supply chain for batteries in the country could be made environmentally friendly within seven to eight years, he is quoted as saying; for this purpose, smelters are to be operated with energy from renewable sources. Tesla’s possible battery plans in Indonesia have been reported since last year – they could be more specific next week.


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