Montezuma Mining has released a report from its recent Munich conference highlighting what it calls a ‘tech metal supercycle’, the material supply of manganese for electric vehicles (EVs).
Montezuma cited several examples of manganese requirements among large-scale EV and renewable battery producers, such as LG Chem (Chevy Volt, Nissan Leaf), 3M, GE, BMW (i3) and Tesla. The company implies that due to figures suggesting a penetration of 15 million EVs by 2025, a Chinese push for zero emission vehicles (12 per cent of vehicles by 2020), and increased demand for non-EV Li-Ion batteries, high purity manganese will need to become a much bigger focus for the mining industry.
The company also explained that high purity manganese only makes up 10 per cent of global annual yield of the metal at present, but over 40 per cent of total value ($US3.6 billion, or $4.69 billion).
The company is a 100 per cent owner of Australia’s largest onshore manganese deposit, the Butcherbird project in Western Australia, which is estimated by Montezuma to contain over 180 million tonnes (110.3 million inferred) of manganese ore. The Butcherbird project is also capable of manganese purity of over 90 per cent after just a single leach stage, a far cry from the more demanding leach conditions found at Chinese and South African mines.
Montezuma cites global research from UBS in May 2017 that found that the manganese market could grow by up to 240 per cent at 100 per cent electric car penetration, an equivalent of over $US5 billion ($6.51 billion).
The full report can be read here.