Indonesia Receives Mining Proposal From Tesla

Indonesia has reportedly received an investment proposal from Tesla Inc. requesting access to its nickel reserves. Once the largest producer of nickel in the entire world, Indonesia’s government started enacting regulations on the exportation of specific mineral ores in an effort to boost the local smelting industry and set up a more robust supply chain focused on lithium batteries.

This resulted in a huge price surge in 2019, as the nation began running mining opportunities under the noses of various industries that would be interested in the raw materials necessary for battery production.

Based on the mad rush the automotive sector has made on cobalt, lithium, and nickel of late, it’s hardly surprising to see a manufacturer trying to tap any reliable source. This is perhaps best embodied by the global pilgrimage German automakers undertook following repeated supply issues with battery suppliers. For many automakers, the last two years have been about securing access to materials — and not just making sure suppliers can handle the ever-increasing demand for EV batteries.

According to Reuters, Indonesia’s deputy head for investment and mining coordination, Septian Hario Seto, received the news on Friday morning. “I received their proposal yesterday morning … next week we will meet them [virtually] to get an official explanation,” he said.

While a non-disclosure agreement limited what else Septian could say, he did note that previous discussions revolved around battery production and that the country likely wouldn’t be interested if the automaker was singularly interested in ore. As previously stated, the Indonesian government essentially shut down its lucrative nickel exportation business just so it could beef up supply chains and doesn’t want that to be for nothing.

“If they only want to buy raw materials, we are not interested. This [proposal] is beyond just taking the raw material,” Septian explained.

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