JAKARTA – PT Merdeka Battery Materials Tbk (MBMA) is preparing IPO funds for the construction of a nickel processing facility in order to realize expansion into the downstream industry.

Based on the presentation of the board of directors at MBMA Due Diligence Meeting & Public Expose today (30/3), the nickel processing facilities include HPAL facilities, matte nickel converters, and sulfuric acid production facilities through the Acid Iron Metal I (AIM I) project. MBMA plans to build two HPAL factories with a total capacity of 120 thousand tons per year, and has signed a contract with CATL to build one of the factories with a capacity of 60 thousand tons.

"We are still in the early phase of expanding into the downstream industry," said Devin Ridwan, Main Director of MBMA. "Right now our focus is on completing projects under construction and integrating them with SCM mines. IPO funds will ensure this process runs on time and optimally," he added.

Until now, MBMA still relies on Nickel Pig Iron (NPI) from the Rotary Kiln Electric Furnace (RKEF) smelter with an installed capacity of 38,000 Ni per year. Following additional RKEF expansion, as well as integration with the SCM mine and the AIM I project, MBMA is projected to be able to produce 88,000 Ni per year, supplemented by 1.2 million tons of sulfuric acid per year. (ZH/LM)