Tesla Producing EV Batteries in Indonesia for South Asia

Jawad

23 Aug 2023

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Tesla Producing EV Batteries in Indonesia for South Asia

Tesla is gearing up to establish a battery materials manufacturing plant in Indonesia within the upcoming months. Indonesian coordinating minister of maritime and investment affairs, Luhut Pandjaitan, revealed in an Instagram post that he led a delegation meeting with Tesla's CEO Elon Musk in San Francisco. During this meeting, Musk discussed his investment plans, with a focus on significant investments in lithium battery materials. It was further shared that Elon Musk is scheduled to visit Indonesia in either September or October.

Recent reports from Reuters have highlighted that Indonesia has extended the qualifying period for electric vehicle (EV) incentives for automakers by two years. This move comes after investment commitments from companies like Neta and Mitsubishi. The revised investment regulations stipulate that manufacturers need to produce a minimum of 40% of their EVs in Indonesia by 2026 to be eligible for incentives. This requirement has spurred local battery development.

Indonesia has actively pursued Tesla's investment since October 2020. Although initial plans for a battery facility in the country fell through, Indonesian President Joko Widodo expressed confidence in February that Tesla would still invest in the nation. With this strategic investment, the US-based EV manufacturer aims to capture a significant share of the South Asian EV market.

Tesla Indonesia battery materials EV market investment South Asia

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