Merdeka Battery Materials Provides $51 Million Loan to Subsidiary

Strategic Financial Support for Nickel Operations

PT Merdeka Battery Materials Tbk (MBMA), a prominent player in Indonesia's battery materials sector, has announced a significant financial commitment to its subsidiary, PT Sulawesi Cahaya Mineral (SCM). The company has extended a loan facility of up to $51 million to SCM, which specializes in nickel ore mining operations.

Key Details of the Loan Agreement

The loan agreement between MBMA and SCM was signed and became effective on December 12, 2025. As the creditor, MBMA will provide financial support to SCM, the debtor, for various operational needs. The loan amount can reach up to $51 million or its equivalent in other currencies. The funds will be utilized for general corporate purposes, including but not limited to capital expenditures and working capital requirements of SCM.

Business Implications and Strategic Significance

This financial backing demonstrates MBMA's strong commitment to supporting the growth and development of its subsidiary. By providing substantial financial resources, MBMA is ensuring that SCM has the necessary funds to carry out its business operations effectively. The loan is expected to enhance SCM's operational capabilities and contribute to the overall performance of the Merdeka Battery Materials group.

Nickel Industry Context

The transaction highlights the importance of nickel in Indonesia's battery materials industry. As a key component in battery production, nickel remains a critical resource for the growing electric vehicle (EV) sector. MBMA's investment in SCM underscores the company's strategic focus on securing and developing nickel resources to meet the increasing demand driven by the global transition to cleaner energy solutions.