Euro Manganese announced US$100M partnership funding through Orion Resources, and Giyani Metals announced financing of US$16M from the Industrial Development Corporation of South Africa (IDC).

Demand for battery-grade manganese sulphate (HP MSM) is expected to grow at a CAGR of 8.3% by 2033. This increase in demand will be principally driven by higher EV penetration rates, coupled with a continuing shift towards the use of manganese-bearing cathode chemistries (including NCM and LMFP) in the lithium-ion batteries which power them. Managense is a popular raw material amongst cathode makers given its affordability, and because its properties enable safety and range improvements.

Chinese producers dominate the manufacturing of HP MSM with only 4% of global production occurring outside of China in 2023.  Current capacity is more than sufficient to meet demand, and Project Blue expects existing producers to be able to supply the market solely through increases to capacity utilisation until 2027. Thereafter, new supply will be required to keep pace with demand. 

New supply will mostly come from China, but the demand for ex-China, ESG-compliant HP MSM is set to grow considerably.  This is because, as part of their efforts to diversify their supply chains and adhere to ESG standards, Western OEMs are exploring alternative sources battery feedstock beyond China – with IRA tax credit stipulations, in particular, expected to have an impact. 

Project Blue is tracking >20 projects outside of China which are targeting production of HP MSM. These include Euro Manganese’s Chvaletice Manganese Project in the Czech Republic and the Bécancour Project in Canada, and the K-Hill project in Botswana managed by Giyani Metals. Both Euro Manganese and Giyani Metals have recently produced HP MSM crystals at their respective demonstration plants.

Significant capital expenditure is required to scale up operations, with CAPEX put at US$757M for Chvaletice and US$284M for K-Hill. With this in mind, the funding from Orion and IDC is a very positive step towards securing funding which would unlock a final investment decision.