Merdeka Battery Materials Tbk

Merdeka Battery Materials Tbk is a mid-tier nickel producer headquartered in South Jakarta, Indonesia, operating primarily in Asia. The company's portfolio consists of 1 operating mine. Key assets include SCM. The company's business model is centered on a vertically integrated value chain, transforming ore into high-value intermediate and battery-grade materials. Operational approach emphasizes seamless coordination across mining, smelting, and refining assets to maximize efficiency and capture value at each stage. Processing capabilities are diversified, utilizing Rotary Kiln-Electric Furnace (RKEF) technology for ferronickel products and High-Pressure Acid Leach (HPAL) technology for battery-grade materials, supplemented by nickel matte converters. This technological diversity allows for flexible production aligned with market demand for both stainless steel and electric vehicle battery inputs. A key competitive advantage stems from strategic partnerships with leading international technology players, which facilitate downstream expansion projects through joint ventures and provide access to advanced processing expertise. The business is supported by strong sponsorship from established investment groups with a proven track-record in developing large-scale industrial enterprises, enhancing access to capital and strategic guidance. The integrated structure, from resource extraction to specialized material production, provides a resilient operational platform and a competitive cost position in the global market.

Strategic direction is guided by the objective of becoming a globally competitive, low-cost producer of battery-grade materials, positioning the enterprise as a key contributor to the global energy transition. A central pillar of this strategy is the continued expansion of downstream processing capabilities, with a specific focus on scaling up HPAL production to meet rising demand from the electric vehicle sector. The organization prioritizes operational excellence and cost leadership across all segments, leveraging internal ore supply and in-park infrastructure synergies to minimize volatility and enhance margins. Growth is pursued through a combination of organic development and strategic partnerships with global industry leaders, which provide access to advanced technology, de-risk capital-intensive projects, and secure market access. Capital allocation is directed towards high-value projects, including the construction and commissioning of new HPAL facilities and the operationalization of integrated acid plants to ensure self-sufficiency in critical inputs. The long-term vision involves moving further up the value chain to produce higher-value nickel products and strengthening its role within the global battery supply ecosystem.

The Board of Commissioners consists of 3 members, including 1 independent commissioner, ensuring compliance with regulatory requirements for board independence. Board oversight is supported by 2 key committees: the Audit Committee and the Nomination and Remuneration Committee, which guide financial reporting integrity and leadership succession. Executive leadership was restructured in 2024 with the appointment of a new President Director, Teddy Nuryanto Oetomo, who holds a PhD in Economics and has prior experience at Credit Suisse and as a board member at PT Bukalapak.com. The Vice President Director, Jason Laurence Greive, brings extensive operational experience from senior roles at other mining companies. The governance framework is demonstrated through regular meetings, with the Board of Directors convening 12 times and holding 7 joint meetings with the Board of Commissioners in 2024. Management philosophy is guided by a set of core values known as 'GReAtnESs' (Growth, Respect, Accountability, Collaboration, Excellence, Safety, Sustainability), which are embedded in the corporate Code of Conduct and reinforced through employee training and integrity pacts.

The company's sustainability framework is managed by a dedicated ESG team led by an Executive General Manager who reports directly to the Vice President Director, ensuring high-level oversight. In 2024, these efforts were recognized with a Gold Rank at the Asia Sustainability Reporting Rating (ASRRAT) and a Gold Rating for Best Corporate Transparency & Emissions Reduction. Environmental stewardship initiatives include programs for water conservation, waste recycling, and progressive land reclamation. Social responsibility is demonstrated through community engagement programs focused on economic empowerment, social development, and local infrastructure enhancement, alongside a strong commitment to workplace health and safety. Governance practices are reinforced by a comprehensive, independently managed Whistleblowing System (WBS), which received and resolved 10 reports in 2024 concerning issues such as conflicts of interest and unethical behavior. The organization also maintains a strict Anti-Corruption and Anti-Bribery Policy, with zero tolerance for violations, and an Anti-Money Laundering Policy to ensure financial integrity across all operations.

The corporate structure is supported by major shareholders including PT Merdeka Energi Nusantara, which holds a 50.04% controlling interest, and Huayong International (Hong Kong) Limited with a 7.55% stake. The ultimate parent entity is PT Merdeka Copper Gold Tbk, with sponsorship from prominent investment firms Provident Group and Saratoga Group. Strategic growth is executed through joint ventures with global industry leaders such as GEM Group and CATL Group, aimed at developing downstream processing facilities and leveraging advanced technologies. A significant structural change in 2024 involved the capital increase of subsidiary PT Merdeka Industri Anantha (MIA) with partner Arniko Materials Pte. Ltd., resulting in the dilution of the company's ownership to 45% and the subsequent de-consolidation of MIA, which is now treated as an associate. This follows the 2023 acquisition of a 60% controlling stake in PT Huaneng Metal Industry (HNMI), an operator of a nickel matte converter, which was a key step in the vertical integration strategy. The company also established PT Merdeka Energi Utama (MEU) in 2024 as a vehicle for new investments, including its interest in PT Meiming New Energy Material.