Tesla is approaching a preliminary deal for the setting up of its production plant in Indonesia, Bloomberg has reported. This vehicle production plant would produce up to one million vehicles annually, which is in line with the EV maker’s annual production volume targets for all of its plants worldwide, according to the news site.

Discussions towards the deal include plans for multiple facilities in Indonesia for different functions such as production and supply chain, Bloomberg cited its source as saying. Talks for this deal are ongoing and the agreement could still fall through, its sources added.

Indonesia’s talks with Tesla are being led by the country’s coordinating ministry for maritime affairs and investment, according to Indonesian investment minister Bahlil Lahadalia. Should the deal be agreed upon, the EV maker’s plant in Indonesia will be its third outside the United States, after Shanghai, China and Berlin-Brandenburg, Germany.

Indonesia resumed talks with Tesla in April 2022 for EV and battery manufacturing

The Indonesia-Tesla courtship has been years in the making. Initial talks about a ‘potential investment‘ came to light in October 2020, and Indonesia president Joo Widodo stated the following month that a high-level team will be sent to meet with the EV maker’s top executives.

In February 2021, the republic revealed that it received an investment proposal from Tesla with a focus on EV battery manufacture; Indonesia is a world’s largest producer of nickel, a crucial ingredient in EV batteries.

Those plans for a battery factory in Indonesia were not to be, however; the republic’s president desire was for Tesla to produce its cars, not just batteries, in Indonesia. in April last year, Indonesia resumed talks with Tesla for EV and battery manufacturing.