ASIATODAY.ID, JAKARTA — Indonesia is set to strengthen its position in the global electric vehicle (EV) battery industry as Australian battery materials technology company Pure Battery Technologies (PBT) plans to invest approximately US$350 million in a precursor Cathode Active Material (pCAM) production facility, marking another milestone in the country’s downstream industrialization strategy.
According to Indonesia’s Ministry of Investment and Downstream Industry, the proposed investment will help establish one of the last critical segments of Indonesia’s battery value chain by enabling domestic production of battery precursor materials, which currently remain underdeveloped despite the country’s abundant nickel resources.
The investment plan was discussed during a meeting in Sydney between Indonesia’s Deputy Minister of Investment and Downstream Industry and Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, Pure Battery Technologies Chairman Stephen Wilmot, and officials from the Indonesia Investment Promotion Center (IIPC) Sydney.
PBT intends to build a pCAM facility using Mixed Hydroxide Precipitate (MHP) supplied by Indonesia’s domestic High Pressure Acid Leach (HPAL) operations. The long-term objective is to establish commercial-scale battery precursor production that supports an end-to-end EV battery manufacturing ecosystem within Indonesia.
“Indonesia already has HPAL facilities and will soon have battery cell manufacturing. The remaining links are pCAM and cathode production. This is where investments such as Pure Battery Technologies become essential to completing a fully integrated battery ecosystem,” Todotua said in an official statement.
The proposed project would expand Indonesia’s battery value chain from nickel mining and refining through MHP, pCAM, cathode materials, and battery cell manufacturing, allowing significantly greater value creation within the country rather than exporting intermediate products for further processing overseas.
As the world’s largest nickel producer, Indonesia has rapidly emerged as one of the most important destinations for EV battery investment. Over the past decade, the country has attracted major investments in nickel refining, HPAL facilities, battery components, and battery cell manufacturing as part of its strategy to move beyond raw material exports.
Industry experts consider battery precursor production among the highest value-added stages of the battery supply chain. Establishing domestic pCAM production would therefore strengthen Indonesia’s industrial competitiveness while reducing dependence on imported intermediate battery materials.
Leidy Surianingrat, Director of the Indonesia Investment Promotion Center (IIPC) Sydney, said the agency will continue facilitating coordination between Pure Battery Technologies, relevant government institutions, and strategic partners to help accelerate the project’s implementation.
If realized, the investment would further reinforce Indonesia’s ambition to become a global hub for EV battery manufacturing and advanced battery materials. It also reflects growing international confidence in the country’s downstream industrialization policy and its expanding role in securing critical mineral supply chains for the global clean energy transition. (AT Network)
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