Not India, Elon Musk could choose Indonesia as Tesla manufacturing hub in Asia

RIAU24.COM – As India continues to buzz about the EV tariff cuts being sought by CEO Elon Musk Tesla now en route to a meeting with Indonesian President Joko Widodo, who is scouting for locations to complete Tesla’s new manufacturing center in Asia.

Earlier this week, Luhut Binsar Pandjaitan, Indonesia’s coordinating minister of investment and maritime affairs, said the Indonesian president plans to meet Musk on the sidelines of a summit of Southeast Asian leaders this weekend in Washington, CNBC reported.

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Indonesia is a major producer of nickel, the main metal for batteries.

In recent months, Indonesia has attracted the attention of several battery and auto manufacturers through its various incentives.

With friendly policies supporting the country’s EV goals, manufacturers have started committing billions of dollars. LG Energy Solution has invested around US$9 billion along with other companies to build supply chains from mining to manufacturing in the country. The company is also developing a battery factory with Hyundai Motor Co., according to a Bloomberg report.

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Meanwhile, the world’s largest power pack manufacturer, Contemporary Amperex Technology Co., has also invested nearly $6 billion in battery projects with government-backed PT Aneka Tambang Tbk and PT Industri Battery Indonesia. And that’s not all. Zhejiang Huayou Kobalt Co. of China and PT Vale Indonesia Tbk announced last month that they will be collaborating on a fifth nickel project in Indonesia.

All of the recent moves in Indonesia, the largest economy in Southeast Asia, demonstrate the importance of being close to sourcing the raw materials used in manufacturing.

And Tesla certainly knew that well. This has created large manufacturing hubs in China and now Germany, both countries known for their industrial production skills and policies that would support sales of their cars.

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