High Purity Manganese Takes Center Stage in Battery Technology
The battery industry has seen a significant shift towards high purity manganese sulfate as a key component in advanced batteries, driven by concerns over cobalt’s price volatility, ethical sourcing issues, and the ongoing evolution of battery chemistries. Manganese-rich chemistries, such as NMC 451 and NMC 90 half zero half, are gaining traction for their lower cost and improved energy density. This trend is further underscored by the recent announcement from European chemical producer Umicore regarding the industrialization of their manganese-rich HLM (High Lithium Manganese) cathode active materials, which they aim to produce commercially for electric vehicles by 2026.
Despite the rapid developments and increasing demand for high purity manganese, the supply side of the industry has been slow to respond. With only one small project beginning production in Indonesia and a few other announcements of scoping and pre-feasibility studies, the industry appears to be lagging behind the market’s needs. Factors such as the existing small surplus in the market, as well as barriers to entry created by new battery passport requirements, may be contributing to this slow response.
Battery passports, which record the origins and production process of battery materials, were introduced in January 2023 and are expected to become mandatory in the European Union by 2026. These passports aim to ensure that suppliers adhere to high ESG (Environmental, Social, and Governance) standards and could create pricing differentiation between suppliers who can meet these requirements and those who cannot.
As demand for high purity manganese sulfate grows, a structural deficit is projected to emerge by 2026, with regional imbalances in North America and Europe potentially creating distinct price differences between markets. Despite the bright future for manganese in battery technology, several factors, such as slower adoption rates for electric vehicles and potential deficits in other battery materials like lithium, nickel, and cobalt, could impact the growth trajectory.