PBT Ready to Invest USD350 Million to Build PCAM Facility, Completing Indonesia's Nickel Downstream Chain
The Indonesian government is advancing the downstream development of the national nickel industry with a planned investment from Australian battery material technology company Pure Battery Technologies (PBT) to build a precursor cathode active material (PCAM) facility. The investment is a strategic part of efforts to strengthen the nickel downstream value chain, particularly in the midstream sector that produces precursors for electric vehicle batteries.
Deputy Minister for Investment and Downstreaming/Vice Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu stated that PBT plans to build a PCAM production facility in Indonesia. The plant will develop a cathode precursor industry based on mixed hydroxide precipitate (MHP) supplied from domestic high-pressure acid leach (HPAL) facilities.
“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,” Todotua said in a statement on Thursday (2/7/2026).
Leidy Surianingrat, Director of the Indonesia Investment Promotion Centre (IIPC) Sydney, confirmed that her office is committed to facilitating the follow-up process for this investment, 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 with relevant government stakeholders and strategic partners, as well as supporting the next steps towards project realisation,” she said.
The meeting between Deputy Minister Todotua Pasaribu, IIPC Sydney Director Leidy Surianingrat, and PBT Chairman Stephen Wilmot took place at the IIPC Sydney office. The planned investment value is approximately USD350 million. This investment aims to complete the national battery industry value chain from nickel, MHP, and PCAM to cathodes and battery cells, while strengthening Indonesia’s competitiveness as a hub for the electric vehicle ecosystem.
This PCAM investment is considered important for Indonesia as it addresses a gap in the midstream supply chain and optimises added value that has not yet been captured domestically. Beyond the investment plan, the government and PBT also discussed the establishment of PBT’s legal entity in Indonesia, options for the production facility location, as well as financing schemes and strategic partnership opportunities in the mining and nickel processing sectors.
The development of the PCAM project through collaboration between the Indonesian Government, the Ministry of Investment and Downstreaming/BKPM, IIPC, and global investors such as Pure Battery Technologies is expected to be a concrete step in strengthening the national battery industry supply chain from upstream to downstream, while reinforcing Indonesia’s position as a key player in the global battery ecosystem.
Precursor production is one link in the nickel downstream chain that has not yet developed in Indonesia. In fact, this stage is one of the highest value-added segments in the nickel industry because it can significantly increase the value of material from MHP to battery precursors. Therefore, the development of the PCAM industry domestically is expected to ensure that this added value is enjoyed in Indonesia, rather than flowing to other countries.