MBMA Shows Robust Nickel Business Performance Despite Low Prices in Q1 2025

Published: May 13, 2025 19:32

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In the first quarter of 2025, PT Merdeka Battery Materials Tbk. (MBMA), a subsidiary of Merdeka Copper Gold, demonstrated strong performance in its nickel business despite ongoing low nickel prices. The SCM mine achieved year-on-year growth in ore production while significantly reducing costs. A major operational highlight was the AIM acid plant setting a quarterly production record of 168,738 tons of acid. MBMA also made two key advances in its downstream strategy: in December 2024, PT ESG New Energy Material produced its first batch of MHP nickel, marking Merdeka’s official entry into the battery-grade materials sector; in January 2025, construction began on the PT Sulawesi Nickel Cobalt (SLNC) HPAL plant, which is expected to produce 90,000 tons of MHP nickel annually and aims to begin operations within 18 months. PT ESG and PT SLNC together form the foundation of Merdeka’s integrated battery materials value chain, positioning the company as an emerging player in the global electric vehicle battery supply chain. However, unaudited quarterly revenue fell 7% year-on-year to USD 504 million, mainly due to a USD 79 million drop in nickel-related income.

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