Merdeka Battery Materials stock: Q3 nickel output hits record

Merdeka Battery Materials set a record for nickel ore production in the third quarter of 2026, according to Bisnis.com. The report published on November 2 said output reached 12.3 million wet metric tonnes, up 61 percent from both the previous year and the second quarter.

Mining Gains Offset Processing Pressure

Saprolite production rose 68 percent year over year to 3.3 million wet metric tonnes, while limonite output increased 62 percent to 9 million wet metric tonnes. The company attributed the gains to higher equipment utilization, improved hauling capacity and stronger productivity at key mining areas.

Mining economics also improved. Saprolite cash margin rose 23-fold year over year to 35.8 US dollars per wet metric tonne, while limonite cash margin increased 85 percent to 12 US dollars per wet metric tonne. Higher realized ore prices following changes to Indonesia's Mineral Benchmark Price framework, together with cost controls, supported the improvement.

The downstream picture was more mixed. Nickel pig iron production rose 5 percent quarter over quarter to 20,553 tonnes of contained nickel, while high-grade nickel matte output increased 3 percent to 9,436 tonnes. Higher ore, energy and smelting costs continued to weigh on processing margins, with high-grade nickel matte remaining loss-making before hedging benefits, according to the report.

Integrated Assets Remain In Focus

Acid Iron Metal production also increased during the quarter. Sulfuric acid output reached 291,198 tonnes, up 13 percent quarter over quarter, while related revenue rose 18 percent to about 98 million US dollars as demand from high-pressure acid leach facilities in Indonesia remained solid.

Business Model And Peer Position

Merdeka Battery Materials is an Indonesia-based integrated nickel company spanning ore mining, smelting, acid production and battery-material processing. Its assets serve stainless-steel and electric-vehicle battery supply chains through products including nickel pig iron, high-grade nickel matte and inputs for mixed hydroxide precipitate. A MarketsandMarkets industry overview groups MBMA with PT Vale Indonesia and Harita Nickel as Indonesian nickel companies with footholds in specialized segments, placing MBMA among the country's integrated nickel operators.

Indonesia's mining and metals market remains closely linked to stainless-steel demand, battery-material investment and the expansion of domestic nickel processing. See Current market reports for the broader market environment.

More news and analyses on Merdeka Battery Materials stock.