PT Merdeka Battery Materials reported production of 19,819 tonnes of nickel pig iron (NPI) in the third quarter of 2025, an increase of 18% from the previous quarter but a decrease of 4% year-on-year.
The quarter-on-quarter growth was driven by the completion of an extensive overhaul of two furnaces at the BSI line, which supported a recovery from the 16,748 tonnes produced in Q2. Operations are still in a phase of gradual recovery and have not yet returned to full capacity. The year-on-year decline was due to planned maintenance on RKEF equipment during the quarter. Meanwhile, the company continued to optimize costs, achieving a 16% reduction in production costs compared to the same period last year.
As part of a strategic adjustment, Merdeka had suspended production at its HGNM (nickel matte) project in the first quarter to focus resources on higher-margin NPI operations. However, following the signing of an economically attractive supply agreement, the company decided to restart its nickel matte production line in Q3. The first batch of HGNM was successfully produced in early October, marking the official resumption of this product line.
Due to the planned maintenance of two RKEF furnaces in the first half of 2025, the company has revised down its full-year NPI production guidance to 70,000-80,000 tonnes. Following the decision to restart HGNM production, the nickel matte production target for 2025 has been set at 20,000-25,000 tonnes.
Written by Cora Ji, jiruyan@mysteel.com
