GEM promotes nickel downstream processing to strengthen Indonesia's position in the global market
Jakarta (ANTARA) - GEM Group (GEM Co., Ltd.) through its subsidiary PT QMB New Energy Materials is promoting nickel downstream processing to strengthen Indonesia’s position in the global electric vehicle (EV) battery supply chain.
“Previously, much of Indonesia’s low-grade laterite ore went unused. Now we can process it, while recovering nickel and cobalt with a recovery rate of more than 90 percent,” said Chairman and Founder of GEM Group Prof. Xu Kai Hua in a statement received in Jakarta on Monday.
This technological development is accompanied by the construction of integrated facilities from ore processing to the production of nickel sulphate and battery precursors, which are key components in the global electric vehicle supply chain.
This step is believed to be a strategy to strengthen Indonesia’s position in the nickel downstream industry and marks a shift from being a supplier of raw materials to a strategic part of the global new energy supply chain.
In terms of industry performance, during the 2024–2025 period, the GEM Group industrial zone in Morowali recorded exports worth around $2.5 billion, tax contributions of $400 million, and the creation of more than 10,000 jobs.
These figures demonstrate that downstream processing not only impacts the industrial structure but also provides direct economic contributions.
On the other hand, the development of an innovation ecosystem is also part of the industrial strategy. GEM is building a joint research facility at Bandung Institute of Technology with an investment of around $30 million.
This laboratory is equipped with more than 300 devices and covers various research stages, from metallurgical 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.