Guide on Manganese Stock Investment
The global manganese alloy market is projected to reach an impressive $29.21 billion by 2030, driven primarily by the rising demand from the automotive industry and the Asia Pacific region [5]. This growth is largely attributed to the increasing use of manganese in electric vehicles (EVs) and their batteries.
Manganese in Electric Vehicles
The growth of EVs, which use lithium-ion batteries containing manganese-based cathodes such as lithium manganese oxide (LMO) and nickel manganese cobalt (NMC), is driving increased demand for battery-grade manganese compounds, notably Mn3O4 [1][4]. As the LMFP (lithium manganese iron phosphate) battery market develops, manganese remains a preferred manganese source, further supporting demand in the battery segment [1].
Several high-manganese rechargeable battery chemistries are expected to enter mass production in Q4 2023 and 2024, potentially lifting manganese prices [2]. Manganese is used in the most common form of lithium-ion batteries, specifically nickel-manganese-cobalt (NMC) cathodes [3].
Manganese Mining Companies
South32 (ASX:S32, OTC Pink:SHTLF) operates the South Africa Manganese operation in South Africa's Kalahari Basin and has a 60 percent stake in the GEMCO manganese operations in Australia's Northern Territory [6]. Anglo American (LSE:AAL, OTCQX:AAUKF) owns the remaining 40 percent of the GEMCO manganese joint venture in Australia [6]. Jupiter Mines (ASX:JMS) operates the Tshipi Borwa manganese mine in South Africa [7], while ChemX Materials (ASX:CMX) is developing its Jamieson Tank high-purity manganese project in South Australia [8].
Eramet (EPA:ERA) is the largest producer of manganese worldwide, operating from the Moanda mines in Gabon [9]. Manganese X Energy (TSXV:MN, OTC Pink:MNXXF) is exploring its Battery Hill manganese project in New Brunswick with the goal of producing high-purity manganese for the North American market [10]. Euro Manganese (TSXV:EMN, OTCQX:EUMNF) is developing its Chvaletice manganese project in Czechia, aiming to recycle tailings from a past-producing mine to produce manganese and decontaminate the site [11]. Firebird Metals (ASX:FRB) aims to produce high-purity manganese from its Oakover project in Western Australia, and to process it into battery-grade manganese sulfate [12].
Production Trends and Challenges
Manganese production, particularly Mn3O4, is growing steadily to meet this demand, with supply capacity expanding alongside more active LMO battery markets [1]. However, production can be influenced by raw material shortages, rising costs (e.g., electricity), and strategic maintenance pauses, affecting supply dynamics [1].
Global manganese production reached 20 million metric tons in 2023, a slight decrease of 200,000 metric tons from 2022 [13]. The major producers of manganese have mining operations in Australia, Gabon, Ghana, China, and South Africa [14]. South Africa, the largest seaborne manganese ore exporter, has seen ore production growth driven by steel demand but faces slowing growth as China’s steel industry matures, potentially limiting supply expansion [3]. Export restrictions or policy shifts in major producer countries can reshape global supply flows [3].
Recycling Impacts
Advances in recycling lithium-ion batteries, recovering valuable manganese-containing cathode materials, may offer supply relief and impact demand for newly mined manganese in the longer term [4]. RecycLiCo Battery Materials (TSX:AMY, OTCQB:AMYZF) recycles cathode materials from battery waste and upcycles them into lithium and battery cathode precursors [15]. Giyani Metals (TSXV:EMM) has a portfolio of manganese oxide projects in Botswana, including its flagship K.Hill project, from which it plans to produce high-purity manganese sulfate monohydrate [16].
In summary, the intersection of EV battery technology development, steel industry evolutions, mining production capacities, export policies, and recycling innovations are the main forces shaping manganese’s future supply-demand landscape. Manganese mining companies will need to adapt to these dynamics by aligning production with evolving battery chemistry trends and navigating geopolitical supply factors [1][3][5].
[1] https://www.benchmarkminerals.com/market-reports/lithium-ion-battery-raw-materials-market-report-2022 [2] https://www.benchmarkminerals.com/market-reports/lithium-ion-battery-raw-materials-market-report-2022 [3] https://www.benchmarkminerals.com/market-reports/manganese-market-report-2022 [4] https://www.benchmarkminerals.com/market-reports/lithium-ion-battery-raw-materials-market-report-2022 [5] https://www.grandviewresearch.com/industry-analysis/manganese-market [6] https://www.south32.net/our-operations/manganese [7] https://www.jupitermines.com/ [8] https://www.chemxmaterials.com.au/ [9] https://www.eramet.com/en/ [10] https://manganese-energy.ca/ [11] https://www.euro-manganese.com/ [12] https://www.firebirdmetals.com.au/ [13] https://www.benchmarkminerals.com/market-reports/manganese-market-report-2022 [14] https://www.benchmarkminerals.com/market-reports/manganese-market-report-2022 [15] https://recyclico.com/ [16] https://www.giyanimetals.com/
In the context of the growing electric vehicle (EV) market and increasing demand for battery-grade manganese, there is a potential opportunity for finance and investing in manganese mining companies, particularly those optimizing production for high-purity manganese used in the most common form of lithium-ion batteries, such as nickel-manganese-cobalt (NMC) cathodes.
As the development of new rechargeable battery chemistries enters mass production, the price of manganese may increase, making it an attractive business opportunity for those involved in the finance, investing, and mining sectors. For instance, Manganese X Energy is exploring its Battery Hill manganese project with the goal of producing high-purity manganese for the North American market.
