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Euro Manganese sees an opportunity in global supply chain imbalances

Euro Manganese Inc (ASX:EMN) (CVE:EMN) is seeing an opportunity to fill supply chain gaps for ultrahigh-purity manganese products used in the lithium-ion battery industry.

The company is aiming to do this through its Chvaletice Manganese Project in the Czech Republic for which feasibility study test work has been underway since October 2019.

According to Benchmark Mineral Intelligence data, manganese has flown under the radar compared to its battery raw material peers, yet its distribution of production capacity across the battery supply chain is just as precarious as the highest risk raw materials of lithium and cobalt.

Production-refining imbalance (source: Benchmark Mineral Intelligence)

In 2019, manganese was not mined in any significant quantities in the main jurisdictions for cathode, battery cell or EV production.

In fact, North America produced zero tonnes of manganese and Europe fractional tonnes, via a small operation in Ukraine. Meanwhile, China only produced 6% of global total output relying on primary producers such as South Africa, Australia and Gabon.

Those familiar with the supply chains for lithium, cobalt, graphite and nickel will understand that similar rules apply here: not all manganese can be used to produce the manganese sulphate monohydrate used in lithium ion battery cathodes.

And it is this manganese chemical refining step in the supply chain where China has the significant advantage with 93% of production in 2019.

To reiterate: China only produces 6% of mined manganese but chemically refines 93%.

This is a larger imbalance than cobalt of which China similarly mines a fraction, 1% of global supply, but chemically refines 82%.

This is where Euro Manganese comes into the picture

Euro Manganeses goal is to be the preferred European supplier of ultrahigh-purity manganese products for the lithium-ion battery industry.

The company owns Western Europes largest manganese deposit, strategically located in the heart of Europe, amidst a major emerging cluster of electric vehicle, cathode and battery plants.

Growing lithium battery cluster in Europe (The wave of production capacity development that has gone through Asia is now washing over Europe)

Euro Manganese has envisaged a low-cost extraction method involvingRead More – Source