Indonesia to Export Nickel Materials for Tesla EV Batteries Starting in November

Indonesia plans to begin exporting nickel-based materials for electric car batteries to the United States in November, marking a significant step in the country's expanding role in the global electric vehicle (EV) supply chain. Energy Minister Bahlil Lahadalia announced that these precursor materials for battery production would be supplied to Tesla, although details on the quantity have not been disclosed.

“We will export precursor to the U.S. by next month to Tesla, from Weda Bay,” Bahlil told Reuters, referencing a key mining site in Indonesia. The move follows earlier reports from the summer of 2022, when a high-ranking Indonesian cabinet minister stated that Tesla had signed contracts worth around $5 billion to acquire battery materials from nickel-processing companies in Indonesia. Tesla did not respond to inquiries about these statements at the time and has declined to comment on the recent announcement.

Indonesia, known for its vast nickel reserves, has been working to establish itself as a major player in the EV industry by advancing along the value chain—from mining raw nickel to manufacturing battery components and electric vehicles. To support its developing domestic industry, the government has even temporarily halted nickel ore exports, prioritizing further processing within the country.

Several international companies have already recognized Indonesia's strategic importance in the EV sector. This summer, Hyundai and LG Energy Solution launched a battery cell factory in Indonesia, while Hyundai also opened a vehicle plant there in 2022. Companies like Toyota and BYD are also planning to produce electric vehicles locally. More recently, a subsidiary of Chinese battery giant CATL partnered with the state-owned Indonesia Battery Corporation (IBC) to advance battery cell production in the country.

Tesla has long been rumored to be interested in establishing a manufacturing plant in Indonesia, but this project has yet to materialize. Nonetheless, Indonesia’s efforts to attract such major investments are part of its broader strategy to leverage its rich nickel resources to build a fully integrated electric vehicle industry, from mining to end-product manufacturing.