Elon Musk in talks with Indonesia over nickel reserve, Tesla battery factory

2348
SHARE

Tesla (NASDAQ: TSLA) CEO Elon Musk is reportedly negotiating with the government of Indonesia, which has an abundant supply of nickel, one of the key components of the company’s lithium-ion batteries for its electric vehicles. 

Musk and his team are set to meet with top Indonesian government officials next week regarding a nickel venture and a potential lithium battery factory in Batang, Indonesia. 

The Tesla CEO has been encouraging multiple mining companies around the world to increase their nickel production.

Signup for the USA Herald exclusive Newsletter

In July, during a post-earnings call, Musk said, “Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way,” Musk said on a post-earnings call on Wednesday.”

Indonesia has some of the largest nickel reserves in the world. To encourage local development, the country enacted a ban on the export of nickel ore. The Indonesian government believes that it can attract manufacturers to the country, which is beneficial to all parties.