Indonesia Is Nearing EV Deals With BYD Group And Tesla - Minister

A senior Cabinet minister said on Tuesday that Indonesia is finalising agreements with Chinese automaker BYD Group and US automaker Tesla to invest in electric vehicle (EV) production facilities in the Southeast Asian country.

To capitalise on its abundant nickel resources, Indonesia is aggressively encouraging domestic investment in batteries and EVs. It was once a major nickel ore exporter, but it has banned exports to ensure that investors have enough raw materials.

"All of the world's largest [electric] car manufacturers will invest here. BYD Group, the world's largest, Tesla, the world's second largest, Hyundai, and others are all finalising deals with Indonesia "In a meeting with provincial governments, coordinating minister Luhut Pandjaitan stated. He did not reveal any additional information during the meeting. BYD Group and Tesla however, did not respond immediately to requests for comment.

Hyundai established a plant in Indonesia in March of last year to produce the country's first locally assembled EV. SGMW Motor Indonesia, part of a joint venture of SAIC Motor Corp Ltd, General Motors Co and Wuling Motors Holdings, has built assembly facilities in Indonesia.