The signing of the memorandum of understanding (MOU) between Manganese X Energy and US-based battery technology firm C4V marks a significant milestone for the former’s mission to establish itself as a sustainable and dependable North American supplier of high-purity manganese for electric vehicle (EV) batteries. The MOU could potentially pave the way for a global supply agreement.
Manganese X Energy’s proprietary manganese purification technology, utilized in the pilot plant project at its Battery Hill property, aims to produce EV-compliant high-purity manganese sulfate monohydrate (HPMSM), serving as a precursor to the cathode. This pilot initiative, spearheaded by metallurgical research authority Kemetco Research, is located in Richmond, BC.
Milestone Partnership
The collaboration with C4V, a key player in major gigafactory projects worldwide, underscores Manganese X Energy’s strategic positioning in the rapidly expanding EV battery supply chain. Notably, C4V is associated with prominent gigafactory developments such as Recharge Industries’ facility in Geelong, Australia, and iM3NY’s factory in the US.
Martin Kepman, the CEO of Manganese X Energy, articulated the company’s excitement regarding the MOU, emphasizing its potential to ensure the conformity of its HPMSM to C4V specifications and to progress towards a firm offtake arrangement for its Battery Hill manganese.
Battery Hill Property
The Battery Hill property, sprawling across 12.3 square kilometers, encompasses five manganese-iron zones and hosts one of North America’s largest manganese resources. A preliminary economic assessment in May 2022 delineated the feasibility of a low-capital manganese mining operation, capable of yielding 68,000 tonnes of high-purity material over a 47-year life.
At a 10% discount rate, the project features a post-tax net present value of $486 million and a post-tax internal rate of return of 25%, predicated on a base case market price of $2,900 per tonne for battery-grade high-purity manganese sulfate. The capital outlay is estimated at $350 million, with a projected payback period of 2.8 years.
Compelling Market Dynamics
With the escalating demand for high-purity manganese in EV batteries, catalyzed by the intensifying focus of electric vehicle manufacturers on securing long-term supply agreements, Manganese X Energy finds itself ideally positioned. Kepman underscored the opportune timing, given the burgeoning significance of manganese as a favored battery chemistry due to its cost-effectiveness, superior energy density, rechargeability, and prolonged lifespan.
Kepman further highlighted the company’s proactive distribution of its inaugural high-purity HPMSM samples to several EV original equipment manufacturers and EV cell manufacturers, signaling its commitment to meeting and exceeding stringent EV battery standards.
Market Response
The market response to the news has been palpable, with Manganese X Energy’s stock surging by 10.5% by midday on the day of the MOU announcement, reflecting investor optimism in the company’s growth prospects. The company’s market capitalization stood at C$14.4 million ($10.8m), underlining the confidence of stakeholders in the promising trajectory envisioned by Manganese X Energy.
