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Indonesia receives funding proposal from Tesla: official By Reuters


© Reuters. FILE PHOTO: The logo of the automaker Tesla can be seen in Bern

SINGAPORE (Reuters) – Indonesia received an investment proposal on Friday from US electric vehicle maker Tesla (NASDAQ :), the country’s deputy head of investment and mining coordination, Septian Hario Seto, told reporters.

Indonesia is the world’s largest producer of nickel, a material vital to EV batteries, and has publicly invited Tesla to invest in the country to help develop its ambitious plans for the EV and battery industries.

“I got your proposal yesterday morning … we will meet with you (virtually) next week for an official explanation,” said Septian.

Septian said he was unable to provide details on the proposal due to a nondisclosure agreement but said the focus of their discussions had been on batteries and energy storage solutions.

“If they just want to buy raw materials, we are not interested. This (proposal) goes beyond just taking over the raw material,” he added.

Indonesia, once the largest exporter of nickel, stopped delivering nickel last year to build a full nickel supply chain, from mining to processing into metals and chemicals for batteries to meet demand for electric vehicles.

Tesla said last year it is looking for reliable sources of nickel around the world after warning that the current cost of batteries remains a hurdle to its growth.

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