Tesla to build EV and battery storage factory in Indonesia - The Driven

Tesla is inching towards signing an agreement to build an electric vehicle and battery factory in Indonesia, it has been reported.

It is understood the factory could be built at an industrial complex in central Java, and work to start construction could take place by the end of 2022.

It would be Tesla’s third electric vehicle factory outside its home market, and would help to supply growing demand for electric vehicles in the South-East Asian and Pacific region. It may also rule out any possibility of a Tesla giga-factory in Australia, at least in the short term.

Currently, Tesla exports the Model 3 for Australia from Shanghai, and customers must wait until 2023 to receive a new order.

South-East Asian news agencies reported on Friday that Indonesia’s investment minister Bahlil Lahadalia confirmed the news.

“God willing, Tesla will enter Indonesia this year,” Bahlil told a discussion in Jakarta, as quoted by Benar News.

Antara News reported that talks included battery manufacturing as well as electric vehicles, with comments made by Bahlil at the Road to G20: Investment Forum themed “Encouraging Expedition of Sustainable and Inclusive Investment” on Wednesday, part of Indonesia’s G20 2022 events.

“But I can’t announce the month yet. Let’s wait, because we haven’t signed an agreement yet. How much investment is still being kept secret, still waiting,” he said.

“But this is good stuff, big stuff,” he was quoted as saying.

Official confirmation of the agreement has not been forthcoming from Tesla, which does not have a public or media relations department.

Indonesia leads world in nickel reserves, Australia not far behind

Indonesia has 21 million tonnes of reserves of nickel, an important component of electric vehicle batteries. According to NS Energy Business, it is followed closely by Australia, which has 20 million tonnes.

Nickel is needed for higher energy density batteries, and can allow EV makers to use smaller batteries, or to extend the driving range of electric cars.

In mid-2020, Musk pleaded with industry to increase nickel production. “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.”

The news follows Indonesian president Widodo’s visit to Washington and Boca Chica, where he met with Tesla boss Elon Musk at the headquarter’s of Musk’s other company SpaceX.

Musk gave Widodo a private tour of the space agency, some of which was shared in a video by the president’s department on Youtube.

“We’re going to look closely from a Tesla and Spacex standpoint to try to do some partnerships in Indonesia,” said Musk.

“We’re looking closely at a potential collaboration on many many fronts… Indonesia has tremendous potential on so many levels.”

Indonesia has a goal to sell 20% electric cars by 2025. In 2021, nearly 900,000 new cars sold in the island nation.

By comparison, Australia’s new Labor government under prime minister Anthony Albanese has not specified a target but says it wants to encourage more EV uptake by cutting import tariffs and fringe benefits tax.

It also wants to look at policy settings to make electric cars or electric car components.

In Australia in 2021, a little more than 1,000,000 new vehicles were sold. Just 20,000 of those had batteries that could be charged by plugging in, after almost a decade of conservative government under the EV-hostile Coalition.

Bridie Schmidt is associate editor for The Driven, sister site of Renew Economy. She has been writing about electric vehicles since 2018, and has a keen interest in the role that zero-emissions transport has to play in sustainability. She has participated in podcasts such as Download This Show with Marc Fennell and Shirtloads of Science with Karl Kruszelnicki and is co-organiser of the Northern Rivers Electric Vehicle Forum. Bridie also owns a Tesla Model 3 and has it available for hire on evee.com.au.

Adblock test (Why?)