Tesla Signs $5 Billion Nickel Deal with Indonesia, Says Minister
Another Tesla deal has been announced for minerals necessary in the automaker’s electric vehicle (EVs) battery packs, this time coming from Indonesia.
Tesla has signed a contract for a $5 billion nickel processing deal for multiple products in Indonesia, as detailed by a senior cabinet member from the country, reports Reuters.
In an interview with CNBC, Indonesia’s Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan announced that the country had inked a deal with Tesla, noting two specific nickel products the company is buying.
Pandjaitan said, “We are still in constant negotiation with Tesla … but they have started buying two excellent products from Indonesia.”
Tesla ‘Agreed’ to Build a Battery and EV Plant in Indonesia, Says Government https://t.co/iTSQJQIxPO
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He also detailed a five-year contract with Tesla and two nickel processing companies based in Morowali on the island of Sulawesi.
Nickel is an essential mineral for building EV batteries, and that’s how Tesla will use the supplies.
Tesla CEO Elon Musk met with the President of Indonesia in May to discuss supplying nickel to the automaker.
Earlier this year, Tesla also signed a nickel deal with the U.S. company Talon Metals, its first with a U.S. company.