Tesla, Inc. has signed US$5 billion worth of deals to buy nickel products from Indonesia.
According to Luhut Binsar Pandjaitan, Indonesia’s coordinating minister for maritime affairs and investment, Tesla has signed a five-year contract with nickel processing companies operating in an industrial park jointly operated by Chinese nickel titan Tsingshan Holdings Group Co., Ltd. in Indonesia’s Sulawesi island. In an interview with CNBC Indonesia the government official shared that the nickel products will be used for Tesla’s lithium batteries.
According to the U.S. Geological Survey, Indonesia is the world’s biggest source of nickel, with about 23.7% of the total global reserves. The southeast Asian country is looking to develop electric vehicle and battery industries at home and has stopped exports of nickel ore to ensure supply for investors, according to Reuters. Tesla is the largest electric vehicle manufacturer in the United States, owned by Elon Musk.
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