Tesla has reportedly signed a deal to purchase nickel from companies operating in the Morowali Industrial Park. 

According to Indonesian officials, Tesla has signed a five-year contract with nickel processing companies operating out of Morowali in Sulawesi island.  No other details have been set out, nor have the names of Tesla’s partners been disclosed. 

However, if the information that Tesla’s partners are engaged in “nickel processing” and located specifically in Morowali is accurate, it helps to narrow things down.  The Huayue Plant, owned by Tsingshan, Huayou Cobalt and CMOC is one candidate.  The HPAL operation started operating late last year and produces MHP.  It has a planned production capacity of 60ktpy Ni and 6-8ktpy Co.  Another plant that fits the bill is the QMB New Energy Material Plant owned by GEM, CATL and Tsingshan.  The HPAL project is due to start production of MHP and Co/Ni sulphates this year with a stated capacity of 50kpy Ni and 4ktpy Co. Morowali is also home to other smelters that produce NPI, stainless steel and ferrochrome.

The news suggests some supply security for Tesla and its NCA cathodes and a positive result for Indonesia, which has publically been trying to attract Tesla as an investor.  Earlier this year, Indonesia’s Coordinating Minister for Economic Affairs, Luhut Binsar Pandjaitan, met with Tesla CEO Elon Musk at the company’s Gigafactory in Austin, Texas, to restart talks about the possibility of Tesla taking part in the nickel and battery industry in Indonesia.