PT Merdeka Battery Materials Tbk (MBMA) is strengthening the implementation of circular economy practices within the electric vehicle battery raw material supply chain through the development of an acid iron metal (AIM) processing facility. Through this facility, the company processes mining ore residue to be used as raw material for electric vehicle batteries.The AIM facility was built by PT Merdeka Tsingshan Indonesia (MTI), a joint venture between MBMA and Eternal Tsingshan Group Limited. This step is part of the company's strategy to support the development of the electric vehicle industry, while simultaneously increasing the efficiency of mineral resource utilization within the Merdeka Group environment.The President Director of Merdeka Battery Materials, Teddy Oetomo, revealed that the company's business development continues to progress alongside more optimal environmental management and resource utilization."The development of the electric vehicle industry needs to be supported by an increasingly efficient and responsible supply chain. Through the operational integration we are building, the company aims to promote these practices progressively," Teddy explained, as quoted on Friday (5/15/2026).According to Teddy, the AIM facility utilizes pyrite ore residue from the processing at the Wetar Copper Mine, which is operated by the parent company's subsidiary, PT Merdeka Copper Gold Tbk (MDKA), to produce sulfuric acid and steam. Both are used as raw materials in the production process of mixed hydroxide precipitate (MHP) at the high-pressure acid leach (HPAL) plant.“Through this integration, the company applies circular economy principles by optimizing the utilization of mining materials, while also supporting the supply chain efficiency of national electric vehicle battery raw materials,” he stated.In addition to circular economy development, according to Teddy Oetomo, the company continues to strengthen environmental management across all operational areas. By the end of 2025, all of Merdeka Battery's operational entities had obtained ISO 14001:2015 certification for environmental management systems.He explained that MBMA has also formed energy management teams in two subsidiaries, namely PT Sulawesi Cahaya Mineral (SCM) and MTI, to support a more integrated implementation of energy efficiency and emission reduction.Teddy added that MBMA's commitment to sustainability received recognition from various independent institutions throughout 2025. MBMA maintained its Gold Rank in the 2025 Asia Sustainability Reporting Rating (ASRRAT) and achieved a Verified status in the 2025 Sustainable Business Integrity Index (Instar) with the highest score in the basic materials sector.“We also recorded an improvement in our Sustainalytics ESG Risk Rating, which moved to 34.07 from the previous 35.2,” Teddy remarked.
Source https://djakarta-miningclub.com