Indonesia President Widodo and Tesla CEO Elon Musk meet in Texas. Image courtesy of Indonesian Presidential Press Office.

Tesla May Be Finalizing Plans For Indonesia Plant

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

A major part of Tesla’s long-term plans includes expanding production to several different countries beyond its headquarters in the U.S. A new report suggests that Tesla could be getting serious about building another Gigafactory in Asia, in a country that’s already set to become one of the automaker’s key suppliers.

Tesla is getting close to signing a deal to build a plant in Indonesia, according to sources familiar with the matter in a report from Bloomberg. The news comes after Tesla has negotiated with the country for months, especially discussing the Southeast Asian nation’s rich supply of nickel — a crucial mineral for building electric vehicle batteries.

According to one of the sources, Tesla’s plans include multiple facilities in the country for a combination of production and supply chain needs. The sources also noted that a contract hasn’t yet been signed, meaning it’s entirely possible that the deal could still fall through.

Indonesia President Widodo and Tesla CEO Elon Musk meet in Texas. Image courtesy of Indonesian Presidential Press Office.

The sources asked to remain anonymous, as the discussions are not yet public. It’s worth noting, though, that Musk later tweeted in a thread that writers should “Please be cautious about writing articles citing ‘unnamed sources’, as they are frequently false.”

In May, Indonesian President Joko Widodo visited the U.S., culminating in a $5 billion nickel supply deal just a few months later. Widodo also said in an interview that he wanted Tesla to build its EVs in Indonesia, rather than just building batteries or receiving a nickel supply. Additionally, Widodo added that he was willing to spend more time convincing Musk and Tesla to view Indonesia as more than just a resource supplier.

Tesla eventually plans to open 10 to 12 Gigafactories in markets around the globe, according to statements from Musk at last year’s shareholder’s meeting. Currently, Tesla operates just two factories outside of the U.S., its Gigafactory Shanghai and its Gigafactory Berlin-Brandenburg which was opened last year.

Reports have also suggested that Tesla plans to build an EV factory in Mexico’s state of Nuevo León, according to reports from multiple local outlets. Some have also pointed to Canada as a likely candidate for a Tesla Gigafactory.

The news also comes as many critics of the automaker cite recent price cuts in China as a grasp to pick demand back up. In any case, Tesla’s increases to production are noteworthy, even as some believe increasing competition for EVs could threaten the automaker’s dominant position in the EV sector.

Courtesy of EVANNEX, by Peter McGuthrie.


Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Latest CleanTechnica TV Video


I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
 
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
 
Thank you!

Advertisement
 
CleanTechnica uses affiliate links. See our policy here.

Guest Contributor

We publish a number of guest posts from experts in a large variety of fields. This is our contributor account for those special people, organizations, agencies, and companies.

Guest Contributor has 4365 posts and counting. See all posts by Guest Contributor