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Construction of the Tesla Battery Factory in Indonesia Will Start Soon

JAKARTA, KOMPAS.comTesla have almost reached an agreement to build battery factory in Indonesia. Tesla executives’ talks with a number of top state officials are said to take place next week.

Reporting from the page Electrek, Tesla is interested in establishing a new battery factory in the country. One of the factors is that Indonesia is considered to have abundant nickel reserves.

Tesla CEO Elon Musk previously asked mining companies to increase nickel production.

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However, it was recently discovered that Tesla’s talks were not only about increasing nickel demand, but also about building a battery factory in Indonesia.

One of the reasons that forced Tesla to exert energy to exploit the country’s nickel reserves, is the ban on nickel ore exports to encourage local industry.

Indonesian President Joko Widodo also said that he would send a delegation to the United States to meet Tesla executives in order to discuss this project.

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“Next week we will send big teams to the United States and Japan, to promote the Omnibus,” said Jokowi, quoted from Reuters.

“This is very important because we have big plans to make Indonesia the largest producer of lithium batteries and we have the largest nickel (reserves),” he said.

To note, Tesla is trying to get more nickel supplies to support increased production electric car.

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The American manufacturer is currently buying battery supplies from Panasonic and CATL. Now, Tesla is trying to have his own battery cells.

In addition to building cooperation with Indonesia, in September 2020 the company reportedly held talks with Giga Metals, a carbon neutral nickel mining company in Canada.


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