Merdeka Battery Materials stock: Nickel output jumps 61%

Merdeka Battery Materials reported a record quarter for nickel mining on Monday, November 2, 2026, as production gains and higher ore prices strengthened its upstream business. Kontan reported that output reached 12.3 million wet metric tonnes in the third quarter, up 61 percent year on year and quarter on quarter.

Mining Margins Strengthen

Saprolite production rose 68 percent year on year to 3.3 million wet metric tonnes, while limonite output increased 62 percent to 9 million wet metric tonnes. Cash margin reached 35.8 US dollars per wet metric tonne for saprolite and 12 US dollars for limonite, supported by higher realized selling prices, cost discipline and operating efficiencies.

Processing Still Faces Pressure

The downstream business delivered higher volumes but faced margin pressure from rising ore prices, energy expenses and smelting costs. Nickel pig iron production increased 5 percent quarter on quarter to 20,553 tonnes of contained nickel, while high-grade nickel matte output rose 3 percent to 9,436 tonnes.

Acid Iron Metal operations also improved. Sulfuric acid production rose 13 percent quarter on quarter to 291,198 tonnes, while revenue from the product increased 18 percent to about 98 million US dollars. ESG New Energy Material operated both production lines at around 96 percent capacity utilization in September.

Downstream Expansion Continues

PT Sulawesi Nickel Cobalt completed key commissioning stages, received its industrial business license in August and took its first nickel ore supply at the end of September. Merdeka Battery Materials continues to target first mixed hydroxide precipitate production from SLNC in 2026 and is evaluating additional sulfuric acid capacity at AIM.

Integrated Nickel Platform

Merdeka Battery Materials is an Indonesia-based nickel company with activities spanning mining, nickel processing and downstream battery-materials production. Its operations include saprolite and limonite mining, nickel pig iron, high-grade nickel matte, high-pressure acid leach facilities and sulfuric acid production. This integrated structure gives upstream performance a direct role in absorbing pressure in processing margins.

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