PT Merdeka Battery Materials Tbk ( MBMA ), a company that implements downstream services in the electric motorized vehicle battery value chain, is optimistic about producing positive performance in 2023.

The increase in revenue is projected to come from the operation of the ZHN Rotary Kiln Electric Furnace (RKEF) smelter factory. Where this factory will have an installed capacity target of 50,000 tons of Ni in the form of Nickel Pig Iron (NPI) per year.

In addition, optimism is also driven by the AIM project and PT Huaneng Metal Industry (HNMI), a high-grade nickel matte (HGNM) conversion facility whose 60% stake was recently acquired by Merdeka Battery Materials.

MBMA President Director Devin Ridwan explained that the RKEF ZHN smelter and the AIM project are expected to start production after the construction process is completed in the second half of 2023. 

"HNMI will produce HGNM which contains more than 70% nickel by processing low-grade nickel matte produced by the RKEF smelter," he said in an official statement received by KONTAN, Friday (30/6). 

Nickel matte is the main raw material for battery precursors and Class 1 Nickel. HNMI is currently in commercial operation and is expected to start making a positive contribution to MBMA's revenue in the second half of 2023.

In 2022, MBMA's main source of revenue will come from NPI sales to foreign and domestic markets, amounting to US$ 270.33 million and US$ 185.4 million, respectively. The NPI production comes from the RKEF smelters owned by PT Cahaya Smelter Indonesia and PT Bukit Smelter Indonesia, each of which has an installed capacity of 19,000 tons of Ni in the form of NPI per year. 

"So that with the operation of the RKEF ZHN smelter, MBMA's total installed capacity will reach 88,000 tons of Ni per year," he said. 

MBMA has successfully implemented various business plans, especially the acquisition of downstream expansion projects and the process of building a new RKEF smelter. 

"So we are optimistic that this will increase MBMA's revenue potential this year. With the support of nickel raw material reserves which are one of the largest in the world, MBMA will continue to focus on optimizing every opportunity in the downstream business and the electric motor vehicle battery value chain which is also the commitment of the Government of Indonesia," Devin concluded.

Image source: MBMA

Source: https://investasi.kontan.co.id/news/bangun-smelter-nikel-merdeka-battery-materials-mbma-targetkan-produksi-50000-ton