August 9th, 2022
Via STRATFOR, a report on a deal between Indonesia and Tesla for nickel:
What Happened: Tesla and Indonesia signed a $5 billion contract stipulating that Indonesia’s Morowali city on Sulawesi island will supply the company with processed nickel supplies for use in lithium ion batteries for five years, Reuters reported Aug. 8. The nickel will need to be refined in Indonesia before it can be exported, and it is possible that the entire refinement process will take place in Indonesia.
Why It Matters: The large fulfillment contract with Tesla will enable Indonesian President Joko “Jokowi” Widodo to negotiate with other major players like Samsung Electronics Co. or the Taiwan Semiconductor Manufacturing Co. for raw material supply contracts. Additionally, Indonesia’s control of a large share of the world’s known nickel ore reserves will enable Jakarta to set more favorable terms that will fund the country’s development outside of Java island and upscale the country’s exports from simple unrefined ore.
Background: Jokowi previously met with Tesla CEO Elon Musk in Texas to drum up support for Indonesian nickel. Indonesia has roughly 72 million tons of nickel ore reserves, which is 52% of the world’s known supply.
Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.