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Indonesia claims talks with Tesla on EV battery plant still in progress
Elon Musk said nickel supplies were the company's "biggest concern" while Indonesia is known as the world's largest nickel ore producer.
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A Tesla car has its batteries recharged. (Bloomberg/File)
T
he government has confirmed that officials were “still talking” with automaker Tesla Inc. amid reports that the American company has expressed an interest in building a battery factory in Indonesia, which has been vocal about its strong ambition to become an electric vehicle (EV) powerhouse.
High-ranking officials announced in late February that the government and state-owned enterprises (SOE) had started plans for a factory that could be used to either power EVs or energy storage systems (ESS), a complementary technology to solar photovoltaics and wind turbines.
“We are still talking with Tesla. I cannot give any additional details [but] I want to clarify that we have never spoken to them about an EV factory,” Coordinating Investment and Maritime Affairs Ministry investment and mining deputy Septian Hario Seto said at a discussion hosted by KataData on Monday.
Indonesian stakeholders have reportedly signed a non-disclosure agreement (NDA) as part of the talks.
Several local media outlets have incorrectly suggested that Tesla wanted to build an EV factory in Indonesia. Septian himself told reporters on Feb. 4 that Tesla representatives had submitted a proposal for a battery factory to his office, further fanning the rumors. Other officials who have hinted about the potential project include Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, Investment Coordinating Board (BKPM) head Bahlil Lahadalia and SOE Minister Erick Thohir.
However, no definitive plans have been announced and Tesla did not respond to The Jakarta Post’s requests for comment.
According to three analysts, the automaker has good reason to want to build a factory in Indonesia, the world’s top nickel ore producer, to cut costs on raw materials.
