Jakarta, CNBC Indonesia – Tesla recently made a scene about the news that they would build a battery factory in Indonesia. Now, Tesla is also giving the lithium mining players a surprise. This electric vehicle and environmentally friendly energy company will become a new competitor in the lithium mining industry.
According to CEO Elon Musk, Tesla has acquired the rights to a plot of 10,000 hectares in the US state of Nevada. At the site, he plans to extract the metal using simple table salt, and will build a lithium refinery to supply the new plant in Texas.
Seeing this, both insiders and industry observers were skeptical, as Tesla could pose a serious competitive threat to established lithium producers. Instead, they said Tesla’s plans were unlikely to come to fruition for many years.
Moreover, this move looks like it is designed to put pressure on the industry, which is so far dominated by five companies, to increase lithium production.
Tesla is now reportedly looking to more than half of its battery costs in an effort to produce a $ 25,000 electric car that can compete with mass-market mid-range petrol vehicles.
According to Citigroup analysts, to reach its ambitious production target of 20 million cars by 2030, Tesla will need 3 terawatt hour batteries a year, so the lithium industry will need to grow more than eightfold just to supply Tesla.
Energy consultant Wood Mackenzie said US $ 50 billion needed to be invested in lithium over the next 15 years to meet battery demand.
But lithium producers have struggled to thrive in the face of falling prices over the past three years. Prices for lithium hydroxide, the type Tesla uses, have fallen 20% over the past year, according to Benchmark Mineral Intelligence.
Without further investment, Tesla risks lithium shortages and faces a potential price hike over the next decade.
“I’m not sure Tesla will succeed in supplying their own lithium needs in such a high percentage,” said Joe Lowry, a veteran consultant for the lithium industry. Financial Times, Wednesday (21/10).
“I think they will struggle like everyone else who enters this industry, it is not easy to make high quality lithium chemicals, Elon knows that. Is it just a ruse to get the lithium company to the negotiating table?” he continued.
Meanwhile, according to experts, Tesla also needed federal permission to start mining in Nevada, a process that could take years to get to grips with the industry.
Tesla is rumored to be building a battery factory facility for electric cars in the integrated industrial area of Batang, Central Java, Indonesia, which is being built by the government.
Minister of Industry (Menperin) Agus Gumiwang openly admitted that the Tesla plan was “Ongoing discussion” and was prepared for the Batang area.
The news that Tesla is interested in building a battery factory in Indonesia has been spreading since September 2020. Even the Coordinating Minister for Maritime Affairs and Investment, General TNI (Purn) Luhut Binsar Pandjaitan, claimed that Tesla had called, early last October. According to Luhut, Tesla’s management is interested in investing because Indonesia has the largest nickel reserves in the world.
“I want to convey again that there are many who are interested in investing in Indonesia, I just got a call from Tesla in America, they are also interested in building a lithium battery (factory) in Indonesia,” said Luhut on Wednesday (9/9/2020).
Until now, the area needed for factories such as Tesla in Batang is not certain. However, the area manager prepares land in the first phase, covering an area of 450 ha, is expected to be ready in Quarter I-2021.
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