Indonesia, known for its abundant nickel resources, has proposed a groundbreaking project to Tesla CEO Elon Musk. The proposal involves the construction of an electric vehicle (EV) battery plant in the nickel-rich country, aiming to capitalize on its position as the world’s largest nickel reserve holder.
The offer was extended to Musk following a meeting with Indonesian President Joko Widodo during a water conference in Bali. The Coordinating Maritime Affairs and Investment Minister, Luhut Binsar Pandjaitan, revealed that the proposal includes the establishment of an EV battery factory, complete with precursor cathode production facilities.
With Indonesia currently providing 40% of the world’s nickel, a figure that could rise to 75% by 2030, the government is keen on boosting its industrial growth by tapping into the EV battery and solar panel markets. As part of its ambitious goals, Indonesia targets the production of 600,000 EVs by 2030, with a requirement of 60% local content in EVs and components by 2027.
While Musk did not make any formal investment commitments during his visit to Bali to launch the Starlink satellite internet service, he hinted at the potential for future investments in Indonesia. President Widodo also urged Musk to consider investing in an AI center and constructing a SpaceX launchpad in Papua, further showcasing Indonesia’s eagerness to collaborate with Tesla and SpaceX.
On the other hand, in the United States, federal safety investigators are reportedly looking into Tesla’s decision to recall over 2 million vehicles equipped with the Autopilot system. This move comes in the wake of 20 reported crashes following a software update, raising concerns about the safety implications of Tesla’s autonomous driving technology.
