BKPM: Australian Investor Eyes Indonesian Battery Supply Chain Opportunity
The Indonesian government is intensifying its nickel downstream agenda through detailed investment discussions for a precursor Cathode Active Material (pCAM) facility with Australian firm Pure Battery Technologies (PBT). The talks took place during a meeting between Deputy Minister for Investment and Downstreaming Todotua Pasaribu, PBT Chairman Stephen Wilmot, and Indonesia Investment Promotion Centre (IIPC) Sydney Director Leidy Surianingrat at the IIPC office in Sydney on Monday (29/6).
PBT outlined plans to develop a pCAM industry based on Mixed Hydroxide Precipitate (MHP) supplied from domestic High Pressure Acid Leach (HPAL) facilities, with a long-term goal of establishing a production plant in Indonesia. The planned investment value is approximately USD 350 million.
“Indonesia already has HPAL and will soon have battery cell manufacturing. The remaining links in the chain are pCAM and cathodes. This is precisely where investments like Pure Battery Technologies become crucial to complete a fully integrated battery ecosystem,” said Deputy Minister Todotua.
The investment is expected to complete the national battery industry value chain, spanning from nickel and MHP to pCAM, cathodes, and battery cells, while bolstering Indonesia’s competitiveness as an electric vehicle ecosystem hub. For Indonesia, the pCAM investment is considered vital as it addresses a midstream supply chain gap and optimises added value that has not yet been captured domestically.
The battery precursor stage remains an undeveloped link in Indonesia, yet it represents one of the highest value creation points in the nickel industry chain, where material value can increase significantly from MHP to battery precursor. By developing the pCAM industry domestically, this added value is expected to be enjoyed within Indonesia rather than abroad.
IIPC Sydney Director Leidy Surianingrat stated that her office would continue facilitating the investment follow-up process, including coordination with potential strategic partners. “IIPC Sydney is committed to continuing to facilitate Pure Battery Technologies’ investment journey in Indonesia by connecting the company to relevant government stakeholders and strategic partners, and supporting the next steps towards project realisation,” Leidy said.
Both parties also continued discussions regarding the establishment of PBT’s legal entity in Indonesia, options for production facility locations, as well as financing schemes and strategic partnership opportunities in the mining and nickel processing sectors. Through collaboration between the Indonesian government, the Ministry of Investment and Downstreaming/BKPM, IIPC, and global investors like Pure Battery Technologies, the pCAM project development is expected to be a concrete step in strengthening the national electric vehicle battery industry supply chain from upstream to downstream, while reinforcing Indonesia’s position as a key player in the global battery ecosystem.