Tesla and Musk might be in a position to solve a major EV-industry problem

Tesla and Musk might be in a position to solve a major EV-industry problem ...

Tesla (TSLA) - Get Tesla Inc Reportand Chief Executive Elon Musk are in good standing, but their ambitions are jeopardized by issues common to the entire automotive industry.

The covid-19 epidemic has disrupted supply chains for over two years. Add in the chip shortage. These two difficulties have forced carmakers tosuspend production at certain factories and rethink their supply chains.

Car ownership delays have caused several months in length in the future. For consumers, the supply-demand imbalance has boosted vehicle pricing. And the car reservation lists at manufacturers are so long that buyers must wait several months to get their automobiles.

It''s not going to become better as the sector is also confronted with rising raw-materials prices, a problem that''s furtherened by Russia''s invasion of Ukraine. Metals such as aluminum, palladium, graphite, cobalt, and nickel, which are critical to the automobile industry, have skyrocketed.

These metals help make catalytic converters, air conditioner condensers, and other important vehicle components. Nickel is used to make stainless steel and the batteries, which are the core of an EV because they influence the vehicle''s range and play a crucial role in its performance and security.

Securing Supplies of Raw Materials

Outside the parts shortages, raw materials are becoming more difficult to get. Russia, caught up with its war on Ukrainer, is a major exporter of nickel.

Tesla and its charismatic CEO have made the difference on this occasion. Almost every company has been able to make agreements with nickel manufacturers, thus ensuring supply.

Musk and Tesla have just received a deal to deal with Russia''s situation. An Indonesian delegation came to Tesla''s Austin headquarters to try and persuade the company and the billionaire to invest in the country.

This Indonesian delegation was composed of Luhut Binsar Pandjaitan, the country''s ambassador to the United States, Rosan Roeslani, the investor Anindya Bakrie, and other industries and business people.

"Our objective is to persuade Tesla to investigate cooperation with Indonesia in terms of supply and processing of nickel as a raw material for fabricating battery cells based on solid and sustainable ESG (Environment, Social, and Governance," Bakrie said.

Here''s the executive''s retweet from Musk:

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Announcements Soon

According to Bakrie, an Indonesian delegation visited Tesla''s gigafactory in mid-November, which includes the vehicle assembly facility and the battery development facility. Musk was invited to attend a B20 event before the G20.

He did not say whether Musk has pledged to invest in Indonesian nickel.

During the first quarter earnings'' call, Musk was asked how does Tesla intend to secure raw materials that must be high-end.

"This is something we think about quite a lot," the serial entrepreneur said. "It depends on what extreme size means, but" if you look at the 5, 10, 20 million vehicle levels, you really have to analyze the macroeconomic. "Just what is the lithium tonnage you need, of nickel, iron phosphate, of graphite, separators, and electrolytes, that look like... Really think of just macro tonnage."

"So we''re examining all of the raw materials and trying to figure out how to reduce the total amount of raw materials necessary to transform the world to sustainability," said the author. I believe that this call does not allow us to really go through all of the details.

"We''re all thinking about these things," Musk said of the decision, saying, "In the coming months, we''ll have some exciting announcements."

Concerns About the Environment

Tesla may continue to secure its supply of this important metal through an investment arrangement in Indonesian nickel, but this may also attract a lot of critics.

Indonesia is a major producer of nickel, and the government is assisting in mining and refining. The country has signed a $9.8 billion agreement with LG to produce lithium batteries intended for electric vehicles. Nickel batteries require nickel.

According to activists and activists, these ambitions do nothing but harm the environment.

Nickel mining and smelting industries are at risk for the lack of fish on traditional fishing grounds, according to fishermen in the Obi Islands and Indonesia.

Because of the high levels of heavy-metal contamination, pollution has resulted in coastal waters becoming a "mud puddle."

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