Jakarta, INTI - The Indonesian government continues to strengthen its national nickel industry downstreaming agenda with the investment plan to build a precursor Cathode Active Material (pCAM) facility with Australian battery material processing technology company Pure Battery Technologies (PBT).
Ministry of Investment/Investment Coordinating Board (BKPM) stated that this investment is a key part of the government's strategy to complete the nickel downstream value chain, particularly at the midstream stage, for the production of precursors for electric vehicle batteries.
Deputy Minister/Deputy Head of BKPM, Todotua Pasaribu, held a meeting with Stephen Wilmot, Chairman of Pure Battery Technologies, and Leidy Surianingrat, Director of the Indonesia Investment Promotion Center (IIPC) Sydney, at the IIPC office in Sydney, Australia.
PBT outlined its plan to develop a cathode precursor material (pCAM) industry based on Mixed Hydroxide Precipitate (MHP) supplied by domestic High Pressure Acid Leach (HPAL) facilities, with the long-term goal of establishing a pCAM production facility in Indonesia. The project's investment value is expected to reach approximately USD 350 million.
"Indonesia already has HPAL and will soon have battery cell manufacturing. The remaining links are pCAM and cathode. And this is precisely where investments like Pure Battery Technologies are crucial to completing a fully integrated battery ecosystem," said Todotua.
This investment will complete the national battery industry value chain, from nickel, Mixed Hydroxide Precipitate (MHP), pCAM, cathode, to battery cells, while strengthening Indonesia's competitiveness as a hub for the electric vehicle ecosystem.
Crucial Investment to Optimize Battery Industry
For Indonesia, this investment is considered crucial because it addresses the challenge of supply chain gaps at the midstream stage while optimizing added value that has not been captured domestically.
The battery precursor stage is currently an underdeveloped link in Indonesia, and it is also one of the highest value creation points in the nickel industry chain, where material value can increase significantly from MHP to battery precursor. With the development of the domestic pCAM industry, this added value is expected to be enjoyed in Indonesia, not abroad.
This stage is also one of the highest value creation points in the nickel industry chain, where material value can increase significantly from MHP to battery precursor. With the development of the domestic pCAM industry, it is hoped that the added value will be enjoyed in Indonesia, not abroad.
Director of IIPC Sydney, Leidy Surianingrat, stated that her office will continue to facilitate 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, and supporting the next steps towards project realization," said Leidy.
Through collaboration between the Indonesian Government, BKPM, IIPC, and global investors like Pure Battery Technologies, the development of this pCAM project is expected to strengthen the national electric vehicle battery industry supply chain from upstream to downstream and Indonesia's position as a major player in the global battery ecosystem.
Conclusion
The Indonesian government is strengthening the downstream nickel industry by exploring investment in the construction of a Cathode Active Material (pCAM) precursor facility with Pure Battery Technologies. Deputy Minister/Deputy Head of BKPM, Todotua Pasaribu, held a meeting with the Australian company. BKPM stated that the investment of approximately USD 350 million will complement the national battery industry value chain, particularly at the midstream stage, which has so far been underdeveloped in Indonesia. This investment is expected to strengthen Indonesia's position as a major player in the global battery ecosystem.
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