GEM Group's Utilisation of HPAL Technology Strengthens Indonesia's Position in the Electric Vehicle Battery Supply Chain
GEM Group (GEM Co., Ltd.) through its subsidiary PT QMB New Energy Materials continues to make efficiency breakthroughs in nickel downstreaming in Indonesia by reducing production costs to below USD10,000 per tonne.
This strategic step not only strengthens Indonesia’s position in the global electric vehicle (EV) battery supply chain but also proves the success of High Pressure Acid Leach (HPAL) technology in processing low-grade nickel ore that was previously unused into high-value materials.
Chairman and Founder of GEM Group, Prof. Xu Kai Hua, emphasised that the use of the latest hydrometallurgy technology allows for maximum and economical recovery of metals such as nickel and cobalt.
“Previously, low-grade laterite ore in Indonesia was largely unutilised. Now we can process it, while recovering nickel and cobalt with a recovery rate of more than 90%,” he stated in a press release on Monday (30/3/2026).
The development of this technology is accompanied by the construction of integrated facilities, from ore processing to the production of nickel sulphate and battery precursors, which are essential components in the global electric vehicle supply chain. This step strengthens Indonesia’s position in the nickel downstream industry and marks a shift from being a raw material supplier to a strategic part of the global new energy supply chain.
This operational sharpness is reflected in the export value of the zone, which reached USD2.5 billion in the 2024-2025 period.
From an industrial performance perspective, during the 2024-2025 period, the zone recorded export value of around USD2.5 billion, tax contributions of USD400 million, and the creation of more than 10,000 jobs. These figures demonstrate that downstreaming not only impacts the industrial structure but also makes direct economic contributions.
In addition, the development of an innovation ecosystem is part of the industrial strategy. GEM is building a joint research facility at Institut Teknologi Bandung with an investment value of around USD30 million. This laboratory is equipped with more than 300 devices and covers various research stages, from metallurgy processes to battery material evaluation.
The existence of this facility is expected to strengthen the linkage between research and industry, while accelerating the development of domestic nickel processing technology. In the long term, this synergy is important for reducing dependence on external technology and strengthening the national innovation base.