Australian firm to build $350 million battery plant in Indonesia

Jakarta (ANTARA) - Pure Battery Technologies (PBT), an Australian battery materials processing technology company, is planning to develop a precursor Cathode Active Material (pCAM) facility in Indonesia with an estimated investment of US$350 million.

Indonesia’s Deputy Minister of Investment and Downstreaming Todotua Pasaribu and Chairman of PBT Stephen Wilmot discussed the investment plan at the Indonesia Investment Promotion Center (IIPC) in Sydney, Australia.

In a statement received here in Jakarta on Thursday, Pasaribu said the Australian company attempts to develop a pCAM industry utilising Mixed Hydroxide Precipitate (MHP) from domestic High-Pressure Acid Leach (HPAL) facilities.

"Indonesia already has HPAL facilities and will soon begin manufacturing battery cells. The missing supply chains are pCAM and cathodes. This is precisely where investments from companies like Pure Battery Technologies become crucial to complete a fully integrated battery ecosystem," Pasaribu remarked.

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He added the investment would bridge critical gaps in the national battery value chain, spanning from nickel mining, MHP processing, pCAM and cathode production, as well as battery cell manufacturing.

The move is expected to significantly boost Indonesia's competitiveness as a global hub for the electric vehicle (EV) ecosystem.

The Indonesian government views pCAM investments is highly strategic to fill a midstream gap in the battery supply chain and optimise the domestic value-added of the country's vast nickel reserves.

Currently, the battery precursor manufacturing remains underdeveloped in Indonesia, despite being one of the segments that generates the highest value in the nickel industry.

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Director of IIPC Sydney Leidy Surianingrat affirmed her office's commitment to ensuring the realisation of the investment by bridging coordination between the Australian firm and Indonesian stakeholders.

"IIPC Sydney is committed to facilitating Pure Battery Technologies' investment journey in Indonesia by connecting the company with relevant government bodies and strategic partners, and supporting the subsequent steps toward project realization," Leidy Surianingrat said.

Beyond the investment plan, the meeting also covered the establishment of PBT's legal entity in Indonesia, potential locations for the production plant, financing schemes, and opportunities for strategic partnerships within the nickel mining and processing sectors.

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Translator: Ahmad Muzdaffar, Uyu Liman

Editor: Fransiska Ninditya

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