Buying nickel for a battery? Tesla is in talks with Indonesia to build a plant.

An Indonesian government official says the government is in early talks with electric car maker Tesla over a potential investment in the country. Indonesia, a major producer of nickel metal, is eager to develop a complete nickel supply chain at home, especially if it is used to produce batteries and eventually become a base for electric vehicles.

Indonesia has stopped exporting unprocessed nickel to attract investors to its domestic industry.

Buying nickel for a battery? Tesla is in talks with Indonesia to build a plant.

Ayodhia Kalake, a senior official at Indonesia’s Maritime and Investment Coordination Ministry, said Tesla had been in informal contact with the Indonesian government about a possible investment. But the specifics of Tesla’s intentions were not specified by Karake.

“It’s still an early discussion, and it’s not yet in the details.” “We need to have further discussions with Tesla,” Karake said in a statement Monday, with many incentives for the Indonesian government to invest in the electric car industry.

The information was not confirmed by Tesla, which did not respond to media requests for comment.

Indonesia said last month it had built a lithium-ion battery plant in Indonesia with South Korea’s LG Chemical and China’s Ningde Times.

Elon Musk, Tesla’s chief executive, earlier this year urged mining companies to produce more nickel in an effort to boost production of its electric trucks and solar projects, saying the company would offer long-term “huge” procurement contracts that were environmentally friendly.

While the popularity of electric vehicles is expected to help reduce global carbon emissions, environmental activists argue that increased production and mining of electric vehicle parts could damage the environment. (TianmenShan)