Tesla plant will be located in Indonesia
A third giant Tesla plant outside the United States is under construction in Indonesia. From there, Tesla can supply markets in Southeast Asia, Australia and Oceania. Construction is planned to begin this year. Raw materials also play an important role in this transaction.
Indonesian Minister of industry confirms the plan
For a long time, there have been rumors that a factory in Tesla Indonesia is under planning. At the same time, these plans seem to be progressing well. Indonesia’s minister of investment, bakhilil rahadalya, said that an agreement had been reached with Tesla and the project could be launched in Batang Comprehensive Industrial Park in Central Java province this year.
This will be the third giant factory outside the US market after Shanghai in China and Berlin in Germany. Therefore, the plan to build a giant factory in Australia should be shelved.
Indonesia has large nickel reserves
One factor that prompted Tesla to choose Indonesia as the site is likely to be the nickel reserves there. The country has 21million tons of nickel, which is an important part of batteries. Nickel ensures higher energy density, resulting in smaller batteries or greater mileage.
Tesla increasingly relies on LFP batteries that are completely nickel free. The automaker still needs more and more nickel as overall production figures increase. However, Indonesia not only wants to export raw materials, but also wants to ensure its share in the battery value chain. Therefore, the country may only sell nickel to companies that invest in processing in Indonesia.
Therefore, LG energy solutions has announced to invest billions of dollars in Indonesia. Tesla goes further. In addition to batteries, it also hopes to produce electric vehicles. Indonesia has set a target for its electric vehicle sales to reach 20% by 2025. In 2021, the island sold nearly 900000 new cars.