BKPM Deepens Investment Plans with Pure Battery Technologies for Battery Precursor Facility

The Indonesian government is deepening investment plans for a precursor Cathode Active Material (pCAM) facility with Australian battery material processing company Pure Battery Technologies (PBT), as part of efforts to complete the national nickel downstream value chain, particularly in the midstream stage for electric vehicle battery precursor production. The investment deepening was discussed in a meeting between Deputy Minister for Investment and Downstreaming/Vice Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu and Pure Battery Technologies Chairman Stephen Wilmot, accompanied by Director of the Indonesia Investment Promotion Centre (IIPC) Sydney Leidy Surianingrat, at the IIPC Sydney office, 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 is targeting the construction of a pCAM production facility in Indonesia with an investment value of approximately USD 350 million. Deputy Minister Todotua stated that Indonesia already has HPAL and will soon have battery cell manufacturing, making investment in the remaining midstream chain, such as pCAM and cathodes, crucial for a fully integrated battery ecosystem. The Ministry of Investment and Downstreaming/BKPM noted that this investment would complete the national battery industry value chain from nickel, MHP, pCAM, and cathodes to battery cells, strengthening Indonesia’s competitiveness as a centre for the electric vehicle ecosystem. The government considers investment in pCAM facilities important as it addresses the supply chain gap in the midstream stage while optimising added value that has not been fully captured domestically. Currently, the battery precursor stage remains an undeveloped link in Indonesia’s industrial chain, despite being one of the highest value-creation points where material value can increase significantly from MHP to battery precursor. IIPC Sydney Director Leidy Surianingrat affirmed the commitment to facilitate the investment follow-up process, including coordination with potential strategic partners and relevant government stakeholders to support the project’s realisation. Both parties also continued discussions on the establishment of PBT’s legal entity in Indonesia, options for the production facility location, financing schemes, and strategic partnership opportunities in the mining and nickel processing sectors.