Indonesia to begin nickel exports for Tesla’s EV batteries in November

Indonesian President Widodo, CEO of PT Vale Indonesia Tbk Febriany Eddy, Investment Minister Bahlil Lahadalia, Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan visit Solia Hill in Sorowako

Indonesian President Joko Widodo, Chief Executive Officer of PT Vale Indonesia Tbk Febriany Eddy, Minister of Investment Bahlil Lahadalia, Indonesia's Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan visit Solia Hill in Sorowako, South Sulawesi, Indonesia, March 30, 2023. REUTERS/Ajeng Dinar Ulfiana

Source: X07159

Indonesia is set to export nickel-based materials used in electric vehicle (EV) batteries to the United States next month, according to the country's energy minister, Bahlil Lahadalia.

The shipments will supply American electric carmaker Tesla, although specific details on the volume have not yet been disclosed, as reported by Reuters.

"We will export precursor to the US by next month to Tesla, from Weda Bay," Bahlil said on October 18 referring to the EV battery precursor material.

The country, known for its rich reserves of nickel, previously exported similar precursor materials to China. Now, it aims to attract major players like Tesla to invest in battery production and car manufacturing within its borders.

Indonesia has long courted Tesla to establish a local presence, leveraging its abundant nickel resources crucial for EV battery production, according to the Reuters report.

However, Tesla has yet to confirm or comment on the planned precursor shipments or potential future investments.

In July, Indonesia launched Southeast Asia’s first and largest EV battery plant in West Java, with an annual capacity of 10 gigawatt-hours, enough to power 150,000 electric vehicles.

Edward Sakyi