Australia-based Pure Battery Technologies (PBT) has committed to investing US$ 350 million in Indonesia's Batang Special Economic Zone (SEZ) in Central Java to establish a production facility for electric vehicle (EV) battery materials.

Central Java Governor Ahmad Luthfi announced that the investment will fund a plant producing precursor cathode active materials (pCAM), a key component used in lithium-ion batteries for electric vehicles and solar energy storage systems.

Construction of the facility is scheduled to begin in 2027 and is expected to create around 1,000 jobs during the construction phase. Luthfi said the investment supports Central Java's renewable energy development strategy and expressed hope that the factory's production would serve both export markets and domestic demand.

"Our local industries should be able to source their manufacturing materials from this facility to stimulate the domestic economy," Luthfi said during a meeting with PBT executives.

He added that Central Java's renewable energy and EV markets have significant growth potential, supported by the province's population of around 38 million across 35 districts and cities.

The provincial government is continuing to promote the installation of solar panels on government buildings, while also exploring floating solar power projects on reservoirs and lakes. It also plans to transition public transport networks to electric vehicles.

PBT Chairman Stephen Wilmot said the company is currently in the engineering phase ahead of construction. Once operational, the plant is expected to employ around 200 permanent workers, excluding jobs in supporting sectors such as logistics, transportation and shipping.

"We do not want to bring in workers from other countries. We want to train local people so they can work in our factory," Wilmot said.

According to Wilmot, the Central Java project represents PBT's largest investment to date. The Batang facility is expected to be more than four times larger than the company's refinery in Germany. The plant is projected to generate approximately US$ 900 million in annual revenue, although actual earnings will depend on nickel price movements.

PBT plans to source nickel from Indonesia to establish a comprehensive domestic battery supply chain. The pCAM produced at the facility will be used in batteries for electric cars, buses and grid-scale energy storage systems.

"We want to establish the entire electric vehicle value chain, including the management of end-of-life batteries. We aim to conduct recycling to ensure no environmental issues arise," Wilmot said.