Tesla has agreed to build a battery and electric car factory in Indonesia. On May 14, CEO Elon Musk met the Southeast Asian nation's President Joko Widodo at the SpaceX launch site in Texas over the weekend.

Indonesian Investment Minister Bahlil Lahadalia said on May 19 that the deal had been completed, without providing many details. He did hint that the project could begin implementation this year.

According to BenarNews, the minister said that Tesla agreed to build a battery and electric vehicle factory in an industrial park in the country's Central Java province. The project could begin this year, but no agreement has been signed.

Indonesia is the fourth most populous country in the world with a population of 262 million. In recent years, Indonesia has been shaping its image as the world's largest nickel producer. Indonesia has about a quarter of the world's nickel ore, and nickel is a key element in power battery cathode materials. Therefore, it has also successfully attracted the favor of many car manufacturers.

Indonesia has been trying to attract investment from Tesla in recent years, trying to capitalize on its position as the world's largest nickel producer. Metals are key components in the cathodes of electric vehicle batteries. By 2025, Indonesia has set a target that 20% of domestically manufactured cars will be electric vehicles.