Tesla Getting Closer To Building New Factory In Indonesia

Earlier this month, Reuters reported on a rumor of Tesla Inc TSLA in talks to build a new factory in Central Java, Indonesia. Now it looks like talks are progressing, as Tesla gets closer to building the factory.

A story from CNBC Indonesia reports Elon Musk is exploring the construction of a battery factory in Indonesia.

Tesla is being directed to build its factory in the industrial area of ​​Batang, Central Java, and the company may be receiving support from the government. Minister of Industry Agus Gumiwang confirmed Tesla's plan and said Tesla would be directed to build a factory in Batang.

Benzinga's Take: As Tesla grows, it will need to produce many more batteries, as that is currently the company's main bottleneck in vehicle production. Indonesia is known for its high nickel production and resources, and could make a great place for Tesla to manufacture a mass amount of batteries.

Geographically, it would be an ideal place to produce batteries to supply the Asian and Australian markets, which are expected to grow quickly.

Photo courtesy of Tesla.