BKPM Deepens Investment Plans with Pure Battery Technologies for Battery Precursor Facility
The Indonesian government is deepening investment plans for the construction of a Cathode Active Material (pCAM) precursor facility alongside Australian battery material processing technology company, Pure Battery Technologies (PBT). This initiative is part of an effort to complete the national nickel downstreaming value chain, specifically focusing on the midstream stage for electric vehicle battery precursor production.
These investment plans were discussed during a meeting between the Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM), Todotua Pasaribu, and the Chairman of Pure Battery Technologies, Stephen Wilmot. The meeting was also attended by the Director of the Indonesia Investment Promotion Centre (IIPC) Sydney, Leidy Surianingrat, at the IIPC Sydney office in Australia on Monday (29/6).
During the meeting, PBT presented its plan to develop a pCAM industry based on Mixed Hydroxide Precipitate (MHP) supplied from domestic High Pressure Acid Leach (HPAL) facilities. The company targets the construction of a pCAM production facility in Indonesia with an investment value of approximately USD 350 million.
“Indonesia already possesses HPAL capabilities and will soon have battery cell manufacturing. The remaining links in the chain are pCAM and cathodes. It is precisely here that investments such as Pure Battery Technologies become crucial to completing a fully integrated battery ecosystem,” said Deputy Minister Todotua in a BKPM press release on Thursday (2/7).
According to the Ministry of Investment and Downstreaming/BKPM, this investment will complete the national battery industry value chain, ranging from nickel, Mixed Hydroxide Precipitate (MHP), pCAM, and cathodes, to battery cells. This step is also expected to strengthen Indonesia’s competitiveness as an electric vehicle ecosystem hub.
The government considers investment in pCAM facilities vital as it addresses supply chain gaps in the midstream stage while optimising added value that has not yet been fully realised domestically. Currently, the battery precursor stage remains an undeveloped link in Indonesia’s industrial chain, despite this segment being one of the highest value-creating points in the nickel industry, where material value can increase significantly from MHP to battery precursor.
By developing the pCAM industry domestically, it is hoped that this added value will be enjoyed within Indonesia rather than abroad. The Director of IIPC Sydney, Leidy Surianingrat, emphasised that his office will continue to facilitate the follow-up process for this investment, including coordination with potential strategic partners.
“IIPC Sydney is committed to facilitating Pure Battery Technologies’ investment journey in Indonesia by connecting the company to relevant government stakeholders and strategic partners, as well as supporting the next steps towards project realisation,” said Leidy.
In addition to discussing project development, both parties continued discussions regarding the establishment of PBT’s legal entity in Indonesia, potential production facility locations, financing schemes, and strategic partnership opportunities within the nickel mining and processing sectors.
Through the collaboration between the Indonesian Government, the Ministry of Investment and Downstreaming/BKPM, IIPC, and Pure Battery Technologies, the pCAM project is expected to serve as a concrete step in strengthening the national electric vehicle battery supply chain from upstream to downstream, while reinforcing Indonesia’s position as a major player in the global battery ecosystem.