Tesla has announced plans to construct a Gigafactory in Indonesia, marking its first manufacturing presence in Southeast Asia. The factory will initially produce lithium-ion battery cells using local nickel and cobalt resources, followed by electric vehicle assembly in Phase 2. Tesla projects annual production of 500,000 battery packs and 250,000 EVs by 2028.
Indonesia’s government has offered incentive packages, including tax rebates, favorable export terms, and infrastructure support. The move is part of Tesla’s strategy to diversify its global supply chain and access Southeast Asian markets more efficiently. The factory is expected to create over 20,000 jobs locally and attract related industries such as mining and high-voltage components. Construction is slated to begin in Q3 2025 with phased operations through 2026 and 2027.