Harita Nickel Leverages Smelter Expansion to Chase EV Dominance
Key Takeaways
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JAKARTA, Investortrust.id — PT Trimegah Bangun Persada Tbk, the Indonesian nickel titan known as Harita Nickel, is proving that in the race for electric vehicle (EV) dominance, scale is the ultimate currency. The firm recorded a staggering jump in sales volumes through the first three quarters of 2025, a feat driven by the aggressive expansion of its processing complex on the remote, mineral-rich Obi Island in North Maluku.
According to a performance update released Saturday (3/14/2026), Harita’s sales from its High Pressure Acid Leach (HPAL) operations—a sophisticated chemical process used to extract nickel from low-grade ores—hit 99,858 metric tons (approximately 110,000 short tons). That represents a 46% surge compared to the same period a year prior.
This growth is more than just a corporate milestone; it serves as a barometer for Indonesia’s burgeoning role in the global energy transition. As Western automakers scramble to secure ethical and consistent supplies of battery-grade nickel, Harita’s ability to bring massive smelter projects online ahead of schedule cements Indonesia’s position as the indispensable, albeit controversial, hub of the EV supply chain.
The Infrastructure of an Inflexion Point
The primary catalysts for this volume spike were the ONC (Obi Nickel Cobalt) project and the third phase of its Rotary Kiln Electric Furnace (RKEF) smelter, known as KPS. The ONC facility, which commenced operations in April 2024, reached its nameplate capacity by August of that year. Meanwhile, the KPS smelter began firing its furnaces in January 2025, quickly ramping up to full production by March.
Management noted that the HPAL output primarily consists of Mixed Hydroxide Precipitate (MHP) and nickel sulfate. These are the "refined gold" of the green economy—essential precursors for the lithium-ion batteries that power everything from sleek sedans to heavy-duty haulers.
The company’s ferronickel division, which serves the traditional stainless steel market, also saw a 41% year-on-year volume increase. This suggests that while Harita is pivoting toward the EV sector, it is maintaining a firm grip on industrial commodities.
Balancing Margins and Growth
Financially, the company’s maneuvers are paying off. While gross profit margins remained steady—owing to a stable cost structure and flat average selling prices—earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 21%.
"The earnings growth attributable to the parent entity was bolstered by our increased equity stakes in the ONC project and the added capacity from the KPS smelter," the management team noted in an analyst briefing. For investors, the message is clear: Harita is not just producing more; it is capturing a larger slice of the profit pie from its most successful subsidiaries.
The Quest for a Circular Economy
As the industry faces mounting scrutiny over the environmental footprint of nickel processing—specifically the disposal of "tailings" or waste—Harita is venturing into waste-to-value technology. Through its subsidiary, Bhakti Bumi Sentosa, the company is developing an iron extraction project.
The goal is to process the leftovers from the HPAL units into usable iron products, effectively turning a liability into an asset. While currently in the pilot phase, the company expects to begin full-scale facility construction by 2026.
On the upstream side, Harita’s drill bits aren't slowing down. Exploration efforts have covered roughly 1,150 acres (466 hectares) with over 2,172 boreholes drilled in the first nine months of 2025. This aggressive prospecting is designed to ensure that the massive "beast" of the Obi Island processing hub never runs out of feedstock.