Local reports are hinting that Tesla might be laying down plans to build a dedicated battery factory in Indonesia. The update was related by Indonesian officials who pointed to ongoing talks with the electric car maker.
CNBC Indonesia reported that the Indonesian government and Tesla are negotiating the possible construction of a battery factory in Batang, Central Java. The location is currently being developed by the country into an expansive industrial area.
In a statement to the media on Monday, Minister of Industry (Menperin) Agus Gumiwang stated that discussions with Tesla are indeed underway for a potential battery factory in Batang. “On going discussion, arahnya ke sana Batang (the direction is Batang),” Gumiwang said.
Coordinating Minister for Maritime Affairs and Investment, General TNI (Purn) Luhut Binsar Pandjaitan has also spoken about the Indonesian government’s potential deal with Tesla. Last month, Pandjaitan told members of the media that had been called by Tesla for a potential project in the country.
“Sebelum saya mengakhiri sambutan saya, saya ingin sampaikan lagi peminat investasi ke Indonesia banyak, tadi saya baru ditelepon dari Tesla di Amerika mereka juga berminat membangun pabrik baterai lithium di Indonesia (Before I end my remarks, I would like to convey that there are many who are interested in investing in Indonesia, I just received a call from Tesla in America, they are also interested in building a lithium battery factory in Indonesia),” he said.
The governor of Central Java has plans to turn the province into a “labor-intensive manufacturing” base, wrote The Jakarta Post. The Indonesian government seems to support the governor’s plans and decided to develop 4,000 hectares of Central Java into industrial real estate.
The industrial site in Indonesia has become a place of interest for manufacturers looking to diversify from China. Several Chinese manufacturers have already agreed to relocate their factories to Indonesia.
As of this writing, Tesla has not confirmed nor denied the reports of its potential Indonesian battery facility project. However, building a battery factory in Indonesia would be a strategic move for Tesla. In the Q2 earnings call, Elon Musk mentioned the EV maker’s need for nickel, and this statement was highlighted once more during Battery Day last month. Indonesia happens to be the largest nickel producer in the world.
Interestingly enough, Indonesia has banned the export of nickel ore in its mining law as part of its efforts to develop a full nickel supply chain. Building a battery factory in Indonesia could then be one of the most efficient ways for Tesla to access the country’s vast nickel supply.
In 2019, Teslarati reported that Tesla may have been exploring the idea of building a facility in Indonesia. Earlier this month, Reuters stated that Tesla and the Indonesian government were in early discussions about the EV automaker making a potential investment in the country.
“It was still an early discussion and was not detailed yet. We need further discussion with Tesla,” stated Ayodhia Kalake, a senior official at Indonesia’s Coordinating Ministry for Maritime and Investment.
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
