Indonesia says Tesla's investment in battery materials production imminent

Indonesia said that Tesla is gearing up to invest in the production of battery materials within the country. An announcement regarding this strategic move is anticipated in the coming months, as per a recent report by Reuters.

Senior Minister Luhut Pandjaitan took to Instagram to share insights from a recent meeting held between an Indonesian delegation and Tesla's Chief Executive Elon Musk in San Francisco.

During this interaction, Musk revealed his intentions to channel investments into the manufacturing of lithium battery materials. However, it's noteworthy that Tesla's focus does not extend to establishing a car manufacturing facility in Indonesia.

Also read: Indonesia's investment minister is confident that Tesla will be injecting money into the country

Luhut acknowledged the substantial scale of this impending investment, stating, "The investment will be quite big. Let's wait for Elon to come here around the end of September or October this year."

Elon Musk's plans for Indonesia go beyond EV batteries; the visionary entrepreneur intends to extend the reach of the internet to remote corners of the country using Starlink, his satellite communications service, as conveyed by Luhut.

Also read: Japan's Nikkei Asia says Tesla's move in Malaysia is a score for PM Anwar over Indonesia's Jokowi

This development follows Indonesia's recent decision to grant automakers an additional two-year window to meet the eligibility requirements for EV incentives. The nation is intensifying its efforts to draw more investment, engaging in a race against Thailand and India to foster an EV industry that can rival China, the global leader in EV production.

Also read: Indonesia grants car manufacturers an extra 2 years to secure EV incentives