US carmaker Tesla has signed contracts worth about $5-billion to buy materials for their batteries from nickel processing companies in Indonesia, a senior cabinet minister told CNBC Indonesia.

The 2209 ferrosilicon contract price on ZCE closed at 7714 yuan per ton on August 8.

The district, part of an old coal-mining region that closed five years ago, has taken up the challenge of transforming the local economy, embracing green agriculture despite the poor soil and lack of water.

"The situation on the gas market is tense," Minister for Economic Affairs and Climate Action Robert Habeck said in a statement.

The Mehrum power plant in Germany is back in operation due to the current gas supply crisis.

These measures have raised concerns that the EU might scale back its climate ambitions.

Many European countries have recently announced the reopening of coal power plants as gas supplies from Russia have slumped amid European Union sanctions.

The 2209 ferrosilicon contract price on ZCE closed at 7712 yuan per ton on August 5.