Elon Musk, the CEO of tesla plans to create a new production hub in Indonesia after India was hesitant and indecisive about the initiative.
Moreover, Elon musk intends to meet the Indonesian president Joko Widodo in order to finalize Tesla’s new production hub in Asia. Indonesia being one of the greatest producers of nickel in the region makes it more attractive for the EVs production hub. Nickel is essential for metal batteries and most recently Indonesia is seen to attract investors in this regard.
Indonesia attracting investors from around the globe
Furthermore, the Indonesian government is also encouraging the EV goals in the country through its friendly policies toward the electric automobile industry. This has attracted manufacturers and investors in the country as they have committed billions of dollars to the industry.
Why Elon Musk is not interested in making Tesla in India? Tesla has multiple factories in the USA, one each in Canada, Germany and even in Shanghai. Why is he now preferring Indonesia over India for his next manufacturing site?
Pic: Modi ji Tesla factory visit in 2015. pic.twitter.com/Z1tuywkgS9
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Similarly, the LG Energy Solution, along with other companies, has started to invest more than $ 9 billion in the initiative and primarily to set up the supply chain. In addition to this, the Hyundai Motor Company is also committed to developing a battery plant in order to strengthen the EVs industry in the country.
Additionally, the world’s largest power pack company, Amperex Technology has also shown its attraction to the growing demand for electric vehicles around the region. The company has promised an investment of $6 billion in a battery project with the state-owned companies PT Aneka Tambang Tbk and PT Industri Baterai Indonesia.
Moreover, China is also amped to invest in nickel projects in Indonesia. The Chinese company, Zhejiang Huayou Cobalt Co. and PT Vale Indonesia Tbk has announced to work on the fifth nickel battery project in the country.
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Indonesia being Southeast Asia’s largest economy has largely attracted investors through its raw material reserves. Likewise, Tesla has also realized the importance of the country in the region and after creating large manufacturing hubs in China and Germany Indonesia would surely prove to be a great venture for the company.