Report
Chris Thompson

Manganese Supply Deficit Looms as Demand from Alloys and EV Batteries Increases

Manganese (Mn) is an essential metal with numerous applications across various industries, particularly in the production of steel and stainless steel, and its growing use in electric vehicle (EV) battery technology.
Nearly 90% of manganese produced globally is used in the steel industry. Manganese alloys impart properties like hardness and strength in products ranging from automotive steel sheets to construction materials.
Manganese also finds chemical applications in fertilizers, batteries, and oxidizers.
Report Highlights: (1.0) Infrastructure Projects (1.1) One of the main drivers of manganese demand is steel production. (1.2) Billion-dollar infrastructure projects in various countries require high-quality steel and could increase manganese demand. (2.0) Manganese is an EV Battery Metal (2.1) A significant catalyst driving manganese demand is the growing battery industry as it plays a crucial role as a cathode material in lithium-ion (Li-ion) batteries, which are used in EVs, consumer electronics, and power storage systems. (2.2) New battery chemistries developed to improve energy density and reduce weight often use more manganese. (2.3) EV companies, battery manufacturers, and chemical companies have been actively pursuing partnerships with mining companies to secure the required crucial minerals. (3.0) Potential Supply Deficit as Early as 2024 (3.1) Given the forecasted EV growth, several reports are indicating a potential supply deficit in the manganese market as early as 2024. (4.0) Secure Supply Chains (4.1)With recent geopolitical and supply chain issues, European and North American industries need to secure a supply chain for critical minerals, including manganese. (5.0) Company Spotlight – Elcora Advanced Materials Corp. (5.1) Elcora’s focus spans the mining, processing, and refining of battery-related minerals and metals. (5.2) Elcora is advancing manganese mining operations at its Atlas Fox Deposit and developing it Atlas Lion Deposit, which hosts both lead and vanadium. (6.0) Other companies mentioned in this report include: African Rainbow Minerals Limited (JSE: ARI), Anglo American (LSE: AAL), Element 25 Limited (ASX: E25), Eramet S.A. (ENXTPA: ERA), Jupiter Mines Limited (ASX: JMS), OM Holdings Limited (ASX: OMH), South32 (ASE: S32), and Vale S.A. (NYSE: VALE | BOVESPA: VALE3).
Underlyings
Anglo American plc

Anglo American is a global mining company with a portfolio of mining operations and undeveloped resources. Co. is focused on diamonds, copper, platinum group metals (PGMs), and bulk commodities and other minerals. Co.'s segments include: De Beers, which produces rough and polished diamonds; Copper, which produces copper; Platinum, which produces PGMs; Iron Ore and Manganese, which produces iron ore, manganese ore and alloys; Coal, which produces metallurgical coal and thermal coal; and Nickel, which produces nickel.

Elcora Advanced Materials Corp

Elcora Advanced Materials is a vertically integrated graphite company that mines, processes, refines, performs added value manufacturing and markets graphite and graphite products.

Elcora Advanced Materials Corp - German Listing

ELEMENT 25

Element 25 Limited, formerly Montezuma Mining Company Limited, is a mineral exploration company. The Company is engaged in carrying out exploration on its tenements and also applies for or acquired additional tenements. Its segments include Australia and France. Its segments are engaged in the determination and assessment of the existence of commercial economic reserves, from the Company's mineral assets in its geographic location. It holds various multi-commodity exploration and mining tenements in Western Australia. Its primary focus is on its approximately 100% owned Yamarna Gold Project, as well as its over 100% owned Holleton Gold Project, which is located approximately 400 kilometers east of Perth. It owns a manganese resource at its approximately 100% owned Butcherbird Project. It has nickel sulfide potential at the Green Dam Project and has a pipeline of business development activities ongoing in France. The Green Dam Project is located east of Kalgoorlie in Western Australia.

Eramet SA

Eramet is a mining and metallurgical group, which specializes in the extraction, production and marketing of non-ferrous metals, their chemical derivatives, alloys and superalloys, and parts. Co.'s operations are divided into three divisions: Nickel division which focuses on nickel and its derivative applications; Manganese division which focuses on manganese alloys, manganese chemical derivatives and provides recovery and recycling services of metals contained in oil-industry catalysts, electric batteries and acid solutions; and Alloys division which produces and sells special high-performance steels, superalloys and pre-machined parts based on these materials or aluminium and titanium.

OM Holdings

OM Holdings is an investment holding company. Through its subsidiaries, Co. is engaged in the operation of manganese mine; exploration and evaluation activities; sales and processing of ferroboron, ferroallory and ores; trading of metals, fabricated metals and ferroalloy products.

South32 Ltd.

South32 is engaged in mining and metal production from a portfolio of assets for the commodities of alumina, aluminium, bauxite, energy and metallurgical coal, manganese ore, manganese alloy, nickel, silver, lead and zinc. As of June 30 2016, Co. operated 10 segments, which were comprised of: Worsley Alumina, South Africa Aluminium, Brazil Alumina, Mozal Aluminium, South Africa Energy Coal, Illawarra Metallurgical Coal, Australia Manganese, South Africa Manganese, Cerro Matoso, and Cannington.

Vale S.A.

Vale is a producer of iron ore and iron ore pellets, raw materials for steelmaking, and producer of nickel, which is used to produce stainless steel and metal alloys employed in the production of several products. Co. also produces manganese ore, ferroalloys, metallurgical and thermal coal, copper, platinum group metals ("PGMs"), gold, silver, cobalt, potash, phosphates and other fertilizer nutrients. Co. is engaged in greenfield mineral exploration in six countries around the globe. Co. operates in four segments: ferrous minerals, coal, base metals others.

Vale S.A. ADS

Provider
eResearch Corporation
eResearch Corporation

eResearch Corporation, which was founded in 2000, is a respected source for institutional-quality, equity research focused primarily on small- and mid-cap companies. Our focus is on identifying companies that have interesting prospects, sound management, and significant potential for share price appreciation.

We also provide research reports on middle and larger-sized companies, using a combination of fundamental and technical analysis. We complement our corporate research coverage with a diversified selection of informative, insightful, and thought-provoking research publications from a wide variety of investment professionals. We provide our professional investment research and analysis directly to our extensive subscriber network of discerning investors, and electronically through our website, www.eresearch.com.

We are not affiliated with or owned by any financial institution, investment banker, brokerage firm, or investor-related organization. We are a private firm, 100%-owned by employees and private investors.

Analysts
Chris Thompson

Other Reports on these Companies
Other Reports from eResearch Corporation

ResearchPool Subscriptions

Get the most out of your insights

Get in touch