Indonesia could become Elon Musk's perfect choice for Tesla's manufacturing unit in Asia as the country has the largest nickel reserves, a key element for the battery production.
It's also believed that the billionaire would visit Indonesia in a couple of months. He has been looking for a suitable place in Asia for manufacturing Tesla cars.
Indonesian Prime Minister Joko Widodo met Tesla CEO in Starbase, Texas, on Saturday.
Indonesian PM Holds Discussion With Musk
Indonesian officials have revealed that the billionaire held discussions over the possible investment in the Asian country's nickel industry and supply of batteries.
During the meeting, Musk stated that there are possibilities of partnership in multiple sectors.
Indonesia Plans to Develop EV Industry
Indonesia was in plans for months to develop a nickel-based EV industry in the country. They have potentially made offers to Tesla and Space X for battery investment.
Nickel is used to producing cathodes for battery cells. Previously, Musk had also urged mining companies to increase their nickel production.
"After a discussion in his office, @ElonMusk invited me to visit the location of the Space X rocket production facility in Boca Chica, United States. For an hour we took a close look at the Space X rocket factory. I have also invited Elon Musk to come to Indonesia," Widodo said in a tweet on Sunday.
Indonesia Bans Export of Nickel Ore
Tesla is possibly discussing with Indonesia a full battery factory in the country. Indonesia recently imposed a ban on the export of nickel ore. With the strategy, Indonesia appears to be successful in its aim to establish a home-based battery industry.
Recently, LG Energy signed a big $10 billion deal for battery manufacturing in Indonesia. Another energy sector firm CATL also revealed its vast investment in battery production in Indonesia, according to Electrek.
Notably, LG Energy and CATL supply battery cells to Tesla. But Musk's meeting with Widodo suggests that Tesla directly wants to be involved with Indonesia for battery manufacturing.
Previously, the billionaire had stated that Tesla will announce the location of the new factories by the end of the year.