Merdeka Battery (MBMA) Profit Rises 29.77% Throughout 2025

Jakarta, CNBC Indonesia — The nickel mining issuer PT Merdeka Battery Materials Tbk (MBMA) recorded a 29.77% year-on-year (yoy) profit increase in 2025.

According to the latest financial report, the profit attributed to the parent entity of MBMA rose from US$22.78 million in 2024 to US$29.56 million, equivalent to approximately Rp492.64 billion, in 2025.

This subsidiary of PT Merdeka Copper Gold Tbk (MDKA) booked revenue of approximately US$1.43 billion. This figure represents a 22.23% decrease from US$1.84 billion in 2024.

The Sulawesi Cahaya Mineral (SCM) nickel mine served as one of the main drivers of operational performance, marked by an increase in production volume. Total saprolite ore production reached 7.0 million wet metric tonnes (wmt), while limonite production amounted to 14.7 million wmt, supporting the raw material needs of the company’s downstream facilities and strengthening operational integration.

On the downstream side, the company continues to develop processing capacity to enhance added value. The company’s downstream operations successfully increased margins year-on-year, supported by lower production costs and an increase in internal ore supply.

Nickel Pig Iron (NPI) production amounted to 73,871 tonnes, while High-Grade Nickel Matte (HGNM) production reached approximately 19,998 tonnes. The High Pressure Acid Leach (HPAL) project also showed positive progress, with Mixed Hydroxide Precipitate (MHP) production at approximately 25,994 tonnes.

In addition, the Acid Iron Metal (AIM) project operated by PT Merdeka Tsingshan Indonesia (MTI), a subsidiary of MBMA, features four fully integrated processing facilities that continue to demonstrate constructive development and are on track to achieve full production.

“In the midst of the global nickel price weakness throughout 2025, MBMA succeeded in maintaining resilient performance through a combination of increased volume, operational efficiency, and optimisation of the value chain integration from mine to downstream products. The company also disciplined in managing its cost structure amid rising operational costs, including the impact of biodiesel fuel policy implementation and royalty tariff adjustments,” as quoted from the official statement on Tuesday (31/3/2026).

For 2026, MBMA targets saprolite ore production of 8-10 million wmt, while limonite ore production is targeted at 20-25 million wmt. In the nickel downstream sector, NPI production is targeted between 70,000-80,000 tonnes, while HGNM is set at 44,000-48,000 tonnes.

MBMA also continues to strengthen its operational cost structure, including a 9% YoY reduction in NPI cash costs during 2025. MBMA anticipates further cost efficiencies with the increased SCM saprolite supply to achieve 100% ore self-sufficiency in the 2026 fiscal year.

In addition, the company has begun operating the Feed Preparation Plant (FPP) to send limonite slurry via pipeline from the SCM mine to the HPAL of PT ESG New Energy Material to improve operational efficiency. This supports the MHP production target of 27,000-30,000 tonnes in 2026.

Meanwhile, the HPAL project of PT Sulawesi Nickel Cobalt (SLNC) with an installed capacity of 90,000 tonnes of nickel per year continues to proceed as planned, with the commissioning of the first line targeted for the second half of 2026.