Not In Indonesia, Tesla Buys Nickel Supplies From New Caledonia Instead
Tesla's illustration (Pixabay)

JAKARTA - Tesla plans to buy nickel supplies to meet its battery supply. Elon Musk's electric car company is rumored to be buying nickel in New Caledonia.

The nickel mining site is in the Goro mine. New Caledonia's nickel production is the fourth largest in the world. This country is a French colony. In 2020, nickel prices had risen 26 percent.

Nickel is needed for the needs of the Tesla electric car battery. The company must secure a supply of nickel for its future battery production. The reason is, not only Tesla is producing electric cars, but other big companies are also enlivening the future car.

"Nickel is our biggest concern to increase the production of lithium-ion cells," Musk said in his Twitter tweet as quoted by the BBC, Monday, March 7, 2021.

For information, nickel reserves in the country are very large and have an important role in local economic growth. The Goro nickel mine, located in the south of the island, has the potential to become the largest nickel producer in the world.

Tesla the "Savior" of the Goro Mine

Previously, the mine was controlled by mining giants from Brazil, Vale and the French state. The two owners are trying to sell it to Trafigura, a Swiss company.

This action angered local residents because they lost ownership and control rights which led to the collapse of the New Caledonia government. In response to this, the workers went on a mass strike as a form of protest.

Tesla plans to enter into "technical and industrial partnerships" with the mine owners to help mine nickel and adjust standards for the common good under the written agreement in the MoU. Vale noted that the engagement of the agreement "enables operations to continue on a sustainable path to the future, preserving jobs and providing economic value to the country."

On the other hand, Tesla does not have share ownership rights in the Goro mine but the existence of a joint agreement gives him significant control over the supply of his battery.

The high demand for nickel for future electric cars has made this commodity sought after by global electric vehicle companies. Currently, the largest mining companies are in Russia, Canada, Indonesia, and New Caledonia.


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