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

December 29, 2023 - Baystreet.ca


A recently released industry report by eResearch highlights the growing demand for manganese, driven by its critical role in steel production and burgeoning electric vehicle (EV) battery technology. The 31-page report, titled "Manganese Supply Deficit Looms as Demand from Alloys and EV Batteries Increases," provides an in-depth analysis of the manganese market, including its applications, demand drivers, and potential supply challenges.

Manganese is essential in various industries, notably in steel production and as a cathode material in lithium-ion batteries. The report reveals that nearly 90% of manganese is utilized in the steel industry, where it enhances hardness and strength in products ranging from automotive steel sheets to construction materials.

The report also underscores manganese's growing significance in the EV battery sector. As a crucial cathode material in lithium-ion batteries, manganese is vital for EVs, consumer electronics, and power storage systems. The development of new battery chemistries to improve energy density and reduce weight often incorporates increased manganese usage.

However, the report raises concerns about a potential supply deficit in the manganese market as early as 2024, primarily due to the forecasted growth in EV demand. This looming deficit is compounded by geopolitical and supply chain issues, emphasizing the need for European and North American industries to secure manganese supply chains.

The report highlights significant companies in the manganese market, including South32 (ASE: S32), Vale S.A. (NYSE: VALE | BOVESPA: VALE3), and Eramet S.A. (ENXTPA: ERA), which are major players in manganese extraction and supply.

Elcora Advanced Materials Corp. (TSXV: ERA) is featured prominently in the report. The company is advancing its manganese mining operations at the Atlas Fox Deposit and developing the Atlas Lion Deposit, which hosts both lead and vanadium. Elcora's strategic focus on mining, processing, and refining battery-related minerals and metals positions it as a key player in the industry.

Christopher P. Thompson, the Director of Equity Research at eResearch, states, "The anticipated supply deficit in high-purity manganese products by 2024 presents a significant challenge and opportunity for the industry. Companies that can secure and scale up production efficiently will be at a competitive advantage in meeting the burgeoning demand from the EV and steel industries."

The report concludes with a comprehensive analysis of manganese pricing, influenced by supply-demand dynamics, geopolitical risks, and the evolving battery technology landscape. The increasing prominence of manganese in EV batteries, coupled with the potential supply deficit, underscores the strategic importance of this metal in the global economy.

For more information about eResearch's Manganese Report, please visit eResearch’s website at www.eresearch.com.

Disclaimer / No representations, express or implied, are made by eResearch as to the accuracy, completeness or correctness of its research. Opinions and estimates expressed in its research represent eResearch’s judgment as of the date of its reports, are subject to change without notice, and are provided in good faith and without legal responsibility. Its research is not an offer to sell or a solicitation to buy any securities. The securities discussed may not be eligible for sale in all jurisdictions. Neither eResearch, nor any person employed by eResearch, accepts any liability whatsoever for any direct or indirect loss resulting from any use of its research or the information it contains. eResearch reports may not be reproduced, distributed, or published without the express permission of eResearch. eResearch accepts advertising and other fees from companies, financial institutions, other third parties, and Institutional and Retail Investors. The purpose of this policy is to defray the cost of researching small and medium capitalization stocks which otherwise receive little or no research coverage. To ensure complete independence and editorial control over its research reports, eResearch follows the CFA Institute’s “Best Practice Guidelines Governing Analyst/Corporate Issuer Relations”.