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In its catch up run on China, Indonesia insists deal with Elon Musk for EV battery materials is all but inked

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In its catch up run on China, Indonesia insists deal with Elon Musk for EV battery materials is all but inked

Indonesia has announced that Tesla is preparing to make an investment in the production of battery materials within the nation. A report from Reuters indicates that an official announcement regarding this strategic move is expected to be made in the upcoming months.

According to information shared on Instagram by Senior Minister Luhut Pandjaitan, a meeting between an Indonesian delegation and Tesla's CEO Elon Musk took place in San Francisco.

Musk disclosed his plans to allocate investments toward the manufacturing of lithium battery materials during this meeting. However, it's important to note that Tesla's focus does not encompass the establishment of a car manufacturing facility in Indonesia.

“He (Elon Musk) has talked to his team many times and has agreed not to make a memorandum of understanding, but to go straight to the agreement, to make an investment here. I think the investment is also quite large,” Luhut conveyed in his official statement.

“Let’s just wait for Elon to come here, around late September or October this year,” Luhut added.

Musk's aspirations for Indonesia supposedly go beyond electric vehicle (EV) batteries. The entrepreneur is said to aim to expand internet access to remote areas of the country through Starlink, his satellite communications service.

This development comes after Indonesia's recent decision to extend the timeframe by two years for automakers to fulfil the eligibility criteria for EV incentives.

The nation is intensifying its efforts to attract more investments, engaging in a competitive race against Thailand and India to nurture an EV industry capable of rivalling China, the current global leader in electric vehicle production.



Jim Kem

Jim Kem

Content Producer

There's just something about cars. It's a conveyance, it's a liability, it's a tool; but it can also be a source of joy, pride, inspiration and passion. It's much like clothes versus fashion. And like the latter, the pursuit of perfection never ends.


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