Tesla (TSLA) is reportedly in talks with Indonesia’s authorities to construct new enterprise to safe a few of the nation’s nickel provide.
Whereas many firms want to safe lithium, cobalt, and graphite to provide batteries for electrical automobiles, Tesla has been extra involved with nickel currently.
Throughout Tesla’s final earnings name in July, CEO Elon Musk pleaded with mining companies to increase their nickel production:
Properly, I’d similar to to re-emphasize, any mining firms on the market, please mine extra nickel. Okay. Wherever you’re on the earth, please mine extra nickel and don’t look ahead to nickel to return to some lengthy — some excessive level that you simply skilled some 5 years in the past, no matter. Go for effectivity, clearly environmentally pleasant nickel mining at excessive quantity. Tesla will provide you with an enormous contract for a protracted time frame, in the event you mine nickel effectively and in an environmentally delicate method. So hopefully this message goes out to all mining firms. Please get nickel.
We have now since heard about Tesla being in talks with Giga Metals and Vale in Canada to safe their potential nickel provide.
Now an official within the Indonesian authorities confirmed that Tesla method them about investing within the nation’s nickel assets.
Ayodhia Kalake, a senior official on the Coordinating Ministry for Maritime and Funding, informed Reuters:
“It was nonetheless an early dialogue and was not detailed but. We’d like additional dialogue with Tesla,”
Indonesia is likely one of the world’s greatest nickel producers and this yr, it’s growing its capability by 46% year-over-year to 550,000 tonnes of nickel.
It has additionally just lately put a ban on exporting nickel ore as a way to encourage the trade to course of it regionally.
Due to this fact, if Tesla needs to safe Indonesia’s nickel, it must put money into processing it within the nation.
At its Battery Day occasion final month, Tesla has proven that it’s ready to enter the mining and processing trade to provide its personal battery cells.
Just lately, Indonesia closed a take care of LG Chem and Modern Amperex Expertise (CATL), two battery suppliers Tesla just lately partnered with, to construct a battery manufacturing unit within the nation.
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