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Billionaires-Backed MBMA Building $1.8 Billion Smelter In Sulawesi
Indonesia is set to become a major player in the electric vehicle (EV) industry as Merdeka Battery Materials (MBMA), backed by two Indonesian billionaires, begins constructing a massive $1.8 billion nickel smelter in Sulawesi.
The project, valued at an astonishing $1.8 billion, will see the construction of a high-pressure acid leach (HPAL) smelter, located within the Morowali Industrial Park in Central Sulawesi. The plant is expected to commence operations within 18 months, with construction already underway since January.
According to Teddy Oetomo, President Director of MBMA, the expansion of downstream processing capabilities is crucial for maximizing the value of their extensive nickel resources. Once operational, the smelter will produce a staggering 90,000 tonnes of mixed hydroxide precipitate, a critical material required for the production of EV batteries.
The new plant will source its raw material from MBMA’s Sulawesi Cahaya Mineral unit, which operates one of the world’s largest nickel mines. This mine holds an astonishing 13.8 million tonnes of nickel and one million tonnes of cobalt.
Funding for the project has been secured through loans, with Indonesian and overseas banks committing a staggering $1.4 billion in financing.
MBMA is owned by Merdeka Copper Gold, which boasts billionaires Garibaldi Thohir and Edwin Soeryadjaya as major stakeholders. Thohir holds a significant 7.4% stake, while Soeryadjaya’s Saratoga Investama Sedaya owns an impressive 19.4%.
