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n ore preparation plant at the SCM mine will enable ore transport to SLNC via pipeline.
The HPAL plant’s total construction cost, including interest during the building phase, is estimated at $1.8 billion. Merdeka Battery owns 45% of Merdeka Energi Baru, while Devmalla Materials holds 55%. Devmalla has provided Merdeka Battery an option to purchase its share in Merdeka Energi Baru after the plant operates for one year and records four consecutive quarters of positive earnings before interest, taxes, depreciation, and amortization (EBITDA). SLNC will oversee the plant’s construction and operations, situated within the Indonesia Morowali Industrial Park. Merdeka Battery is handling the acquisition of required permits and approvals from the Indonesian Government.
Teddy Oetomo, president director of Merdeka Battery, stated: “Expanding our downstream processing capabilities is essential to our strategy for maximising the value of our extensive nickel resources. The SLNC partnership, supported by competitively priced debt financing from leading domestic and regional banks, represents a significant milestone in advancing MBMA’s strategy for producing downstream battery materials. This partnership not only highlights the quality of our company but also reflects the Indonesian Government’s ongoing support for the domestic minerals and processing industry.”
The facility aims to enhance nickel output, targeting an annual capacity of 90,000 tonnes of contained nickel in mixed hydroxide precipitate (MHP). Construction began in January 2025, with commissioning expected within 18 months. SLNC has secured a 20-year supply of laterite nickel ore from Merdeka Battery’s SCM mine, starting at the plant’s operational launch. An ore preparation facility will also be established at the SCM mine, enabling ore delivery to the SLNC plant via pipeline.
This project strengthens Indonesia’s position in nickel production, leveraging substantial financial backing and a long-term resource agreement. The collaboration between SLNC and Merdeka Battery aligns with efforts to expand downstream processing, supported by a structured loan and clear operational timelines. The plant’s location in a key industrial area further enhances its prospects for efficient development and output.
