Abstract:U.S. carmaker Tesla has signed contracts worth about $5 billion to buy materials for their batteries from nickel processing companies in Indonesia, a senior cabinet minister told CNBC Indonesia.
Southeast Asias biggest economy has been trying to get Tesla to set up a production facility in the country, which has major nickel reserves. President Joko Widodo met with Tesla founder Elon Musk earlier this year to drum up investment.
“We are still in constant negotiation with Tesla … but they have started buying two excellent products from Indonesia,” Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan said in an interview broadcast on Monday.
He said Tesla signed a five-year contract with nickel processing companies operating out of Morowali in Sulawesi island. The nickel materials will be used in Teslas lithium batteries.
Tesla did not immediately respond to a Reuters email seeking comment.
Indonesia is keen to develop electric vehicles and batteries industries at home and had stopped exports of nickel ore to ensure supply for investors. The move had successfully attracted investments from Chinese steel giants and South Korean companies like LG and Hyundai.
However, most nickel investment so far have gone to production of crude metal such as nickel pig iron and ferronickel.
The government plans to impose export tax on these metals to boost revenue while encouraging more domestic production of higher-value products, a senior official told Reuters last week.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The SEC cautions the public about TRADE 13.0 SERAX, an unlicensed investment platform using fake endorsements that solicits funds illegally in the Philippines.
eToro, the online brokerage platform, has unveiled its latest innovation: the Onfido Selfie Motion biometric authentication feature.
Fintech start-up Midas has achieved a significant milestone by raising $45 million in equity funding, marking the largest Series A fundraising by a Turkish fintech firm, and the second largest across sectors.
eToro collaborates with 21Shares to introduce a dynamic, data-driven crypto investment portfolio for retail investors.