Sulawesi Nickel Cobalt (SLNC) has successfully secured $1.4 billion (Rp22.93 trillion) in financing to construct a high-pressure acid leach (HPAL) plant on Sulawesi Island, Indonesia.
This project marks a significant milestone in Indonesia’s efforts to expand its nickel processing capabilities and strengthen its position in the global battery materials supply chain.
The funding was obtained through a consortium of banks, including Bangkok Bank Public, Bank Permata, Bank Mandiri, Bank Negara Indonesia, and Bank Rakyat Indonesia.
The loan is structured as a senior secured, non-recourse facility with a seven-year term.
It features a balloon payment upon maturity and no scheduled repayments until 2027.
The total investment for the project, including interest during construction, is estimated at US$1.8 billion.
SLNC is indirectly controlled by Merdeka Battery Materials (MBMA) through its subsidiary Merdeka Energi Baru, which owns 50.1 per cent of SLNC.
MBMA itself holds a 45 per cent stake in Merdeka Energi Baru, with the remaining 55 per cent owned by Devmalla Materials.
Notably, Devmalla has granted MBMA a call option to acquire its stake in Merdeka Energi Baru after the HPAL plant has been operational for one year and achieved four consecutive quarters of positive EBITDA.
The HPAL plant is being constructed within the Indonesia Morowali Industrial Park (IMIP), with SLNC overseeing its construction and operations.
The facility is designed to produce 90,000 tonnes per annum (tpa) of contained nickel in mixed hydroxide precipitate (MHP), a key material for electric vehicle batteries.
Construction began in January 2025 and is expected to reach commissioning within 18 months.
The plant will source laterite nickel ore from MBMA’s SCM mine under a 20-year commercial agreement starting from the plant’s commissioning date.
An ore preparation plant at the SCM mine will facilitate ore transportation via pipeline to the processing facility.
Teddy Oetomo, President Director of MBMA, emphasised the project’s importance: “Expanding our downstream processing capabilities is essential to our strategy for maximising the value of our extensive nickel resources.
“The SLNC partnership, supported by competitively priced debt financing from leading domestic and regional banks, represents a significant milestone in advancing MBMA’s strategy for producing downstream battery materials.”
This development aligns with Indonesia’s broader strategy to enhance domestic mineral processing capabilities and attract investment in its growing battery materials sector.
The Indonesian government has been actively supporting such initiatives as part of its vision to become a global leader in battery production.
With its strategic location in IMIP and robust financial backing, the SLNC HPAL plant is set to significantly bolster Indonesia’s nickel output while contributing to the global transition toward sustainable energy solutions.
The project underscores Indonesia’s commitment to leveraging its vast nickel resources for downstream processing and value creation in the electric vehicle supply chain.
