Manganese X’s flagship Battery Hill project has received positive results for its PEA resulting in the go-ahead for phase II of the project.

In 2021, Manganese X began the first phase of a PEA of the Battery Hill project located near Woodstock, New Brunswick. The report released by Wood Canada last week outlined the potential for 68ktpy of high purity manganese sulphate monohydrate (HPMSM 99.95%) over a 40-year LOM, and a CAPEX of US$350M with a payback of 2.8 years. The positive PEA allows Manganese X to advance to the second phase of the project, including the development of the pilot plant, conducting a PFS and completing an advanced drilling program to upgrade and expand manganese resources.

Manganese is a key ingredient in several lithium-ion battery cathode formulations and thus a vital ingredient in key technologies that will meet the safety, durability, and performance requirements of the EV industry.  Over the past year, interest in manganese as a cathode technology has intensified, with Tesla and Volkswagon both confirming that high-manganese, high-nickel cathodes are central to their future plans.  While sizable volumes of battery-grade manganese are already consumed in LMO, NCM, and NCMA cathodes, more novel chemistries such as LMFP, LNMO, NMx and other nickel-rich technologies present considerable upside.

Project Blue forecasts double-digit demand growth for manganese sulphate in its base case.  While existing and planned capacity should be sufficient to meet demand over the medium term, the vast majority of capacity is in China.  With downstream lithium-ion players and automotive OEMs looking to build more sustainable, local supply chains, there are considerable opportunities for ex-China producers with strong economics and ESG credentials to enter the market.