Manganese Rising to Prominence in the Battery World

High purity manganese sulfate and high purity manganese products continue to make headlines in the battery world, despite being considered a forgotten metal by some analysts. The rise of manganese as a battery metal can be attributed to challenges with cobalt, such as its high price, price volatility, and the fact that 65-70% of it comes from the Democratic Republic of Congo. The answer to these problems was to use more manganese in battery chemistries.

New Manganese-Rich Battery Chemistries

Recent developments in battery chemistries have led to the emergence of new manganese-rich batteries, such as NMC 451, NMC 90 half zero half, HLM (Highly Lithiated Manganese or High Lithium Manganese), and LMFP (lithium manganese iron phosphate). These new chemistries require high purity manganese sulfate and are subject to high ESG (Environmental, Social, and Governance) standards.

Battery Passports and ESG Requirements

Battery passports, introduced in January 2023, record information about a battery’s history and the provenance of its materials, such as manganese sulfate. These passports are expected to become compulsory in the European Union by 2026, and will impact the manganese market by potentially creating barriers to entry for new market entrants and causing differentiation in pricing between suppliers.

Supply Side Slow to Respond to Growing Demand

While there is significant demand for high purity manganese in the battery industry, the supply side has been slow to respond. The Chinese production of high purity manganese sulfate in 2022 increased only by single digits, and few new projects have been announced. This lack of response is partially due to a small surplus related to Chinese lockdowns in 2022 and a spike in prices before the end of that year.

Structural Deficit Emerging After 2026

Despite the slow response on the supply side, a structural deficit is expected to emerge after 2026. The supply and demand chart from CPM Group shows that even with the most optimistic supply scenarios, there will be a deficit in the high purity manganese market. This deficit may be even more pronounced in North America and Europe, where there is a commitment to building local supply chains and giving preference to local suppliers.