Indonesia relies on the electric car industry with its nickel reserves

Indonesia, the world’s first country for its nickel reserves, is determined to capitalize on the heralded launch of electric cars and related industries – especially batteries. US manufacturer Tesla has signed supply deals for nickel-containing products, including one for five years, for nickel-containing products with two companies based in the country, Indonesia’s investment minister said on Monday August 8, in Jakarta with , Luhut Pandjaitan, on the sidelines of a forum promoting the country as a destination for foreign investment. Negotiations would continue, the minister said.

Mr. Pandjaitan traveled to the United States with a delegation of industrialists in April to meet Tesla and SpaceX boss Elon Musk. The following month, the President of Indonesia himself, Joko Widodo, was invited to Boca Chica, Texas, at the future SpaceX launch site to speak with the American billionaire about his future projects in the country. The leading economic power in Southeast Asia with 273 million inhabitants wants to reduce its CO2 emissions by 41% by 2030 and present itself at the G20 summit in November as a future nation for green industries.

The two foundries that will supply Tesla produce hydroxides from the processing of nickel-bearing ores, which are used to make batteries. They are located in the Morowali industrial park in the central part of the island of Celebes, home to the country’s largest integrated nickel production facility. One of the first local hydroxide production units, the joint venture between the Chinese groups Zhejiang Huayou Cobalt and Tsingshan Holding Group, has been operating here since the beginning of the year.

doors wide open

Elon Musk has also been asked by the Indonesian government to invest in a 500,000-vehicle electric vehicle factory, either in Batang on the island of Java or on the island of Borneo in the future North Kalimantan Green Industrial Park (“North Kalimantan Green Industrial Park”). But the minister did not indicate whether this project had progressed. Indonesia wants to rise in the nickel industry. Having established a stainless steel processing industry, the aim is now not only to develop the sector for converting the ore into components for batteries, but also to produce them locally and electric vehicles – an electric car industry has even been established “national priority” in 2019.

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