AGL 39.15 Decreased By ▼ -0.85 (-2.13%)
AIRLINK 127.10 Decreased By ▼ -1.96 (-1.52%)
BOP 6.76 Increased By ▲ 0.01 (0.15%)
CNERGY 4.65 Increased By ▲ 0.16 (3.56%)
DCL 8.49 Decreased By ▼ -0.06 (-0.7%)
DFML 40.95 Increased By ▲ 0.13 (0.32%)
DGKC 82.00 Increased By ▲ 1.04 (1.28%)
FCCL 33.00 Increased By ▲ 0.23 (0.7%)
FFBL 73.35 Decreased By ▼ -1.08 (-1.45%)
FFL 11.76 Increased By ▲ 0.02 (0.17%)
HUBC 109.25 Decreased By ▼ -0.33 (-0.3%)
HUMNL 14.25 Increased By ▲ 0.50 (3.64%)
KEL 5.22 Decreased By ▼ -0.09 (-1.69%)
KOSM 7.57 Decreased By ▼ -0.15 (-1.94%)
MLCF 39.02 Increased By ▲ 0.42 (1.09%)
NBP 63.40 Decreased By ▼ -0.11 (-0.17%)
OGDC 192.50 Decreased By ▼ -2.19 (-1.12%)
PAEL 25.60 Decreased By ▼ -0.11 (-0.43%)
PIBTL 7.30 Decreased By ▼ -0.09 (-1.22%)
PPL 153.31 Decreased By ▼ -2.14 (-1.38%)
PRL 25.42 Decreased By ▼ -0.37 (-1.43%)
PTC 17.30 Decreased By ▼ -0.20 (-1.14%)
SEARL 78.00 Decreased By ▼ -0.65 (-0.83%)
TELE 7.60 Decreased By ▼ -0.26 (-3.31%)
TOMCL 33.20 Decreased By ▼ -0.53 (-1.57%)
TPLP 8.38 Decreased By ▼ -0.02 (-0.24%)
TREET 16.30 Increased By ▲ 0.03 (0.18%)
TRG 56.40 Decreased By ▼ -1.82 (-3.13%)
UNITY 27.50 Increased By ▲ 0.01 (0.04%)
WTL 1.36 Decreased By ▼ -0.03 (-2.16%)
BR100 10,476 Increased By 30.5 (0.29%)
BR30 31,021 Decreased By -168.2 (-0.54%)
KSE100 97,827 Increased By 29.2 (0.03%)
KSE30 30,504 Increased By 23.7 (0.08%)

JAKARTA: US carmaker Tesla has signed contracts worth about $5 billion to buy materials for their batteries from nickel processing companies in Indonesia, a senior cabinet minister told CNBC Indonesia.

Southeast Asia’s biggest economy has been trying to get Tesla to set up a production facility in the country, which has major nickel reserves.

President Joko Widodo met with Tesla founder Elon Musk earlier this year to drum up investment.

“We are still in constant negotiation with Tesla … but they have started buying two excellent products from Indonesia,” Coordinating Minister for Maritime and Investment Affairs Luhut Pandjaitan said in an interview broadcast on Monday.

He said Tesla signed a five-year contract with nickel processing companies operating out of Morowali in Sulawesi island.

Hit by China shutdown, Tesla boosts auto prices and sells bitcoin

The nickel materials will be used in Tesla’s lithium batteries.

Tesla did not immediately respond to a Reuters email seeking comment.

Indonesia is keen to develop electric vehicles and batteries industries at home and had stopped exports of nickel ore to ensure supply for investors.

The move had successfully attracted investments from Chinese steel giants and South Korean companies like LG and Hyundai. However, most nickel investment so far have gone to production of crude metal such as nickel pig iron and ferronickel.

The government plans to impose export tax on these metals to boost revenue while encouraging more domestic production of higher-value products, a senior official told Reuters last week.

Comments

Comments are closed.