American Manganese

The Recycling Solution to the EV Lithium Battery Metal Supply Challenge

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Overview

American Manganese Inc. (TSXV:AMY; OTC US:AMYZF;FSE:2AM) is a specialty and critical metal company focused on using its patented proprietary hydrometallurgical process to recycle lithium-ion battery cathode materials such as cobalt, lithium, manganese, aluminium, and nickel. The company has received funding from the Canadian government and successfully raised $2.3 million for a pilot plant that will replicate real world closed-circuit conditions.

Around the world, regulations have been deployed regarding the recycling of electric vehicle (EV) batteries. In China, EV manufacturers are expected to establish feasible recycling programs; the EU has also established timelines for lithium-ion battery recycling options; and, in Canada, three provinces already have mandatory recycling programs. This has left the door open for companies like American Manganese to utilize their viable technology solutions to meet these regulations.

American Manganese initially contracted Kemetco Research Inc on bench-scale studies of the conceptual process to show it can successfully treat spent lithium ion battery cathode materials, producing recycled cathode materials suitable for re-use in new lithium ion batteries.  Kemetco is a privately-owned contract research and development company specializing in extractive metallurgy, chemical processing and specialty chemical analysis. Together, the companies executed a proof of concept that demonstrated that American Manganese’s recycling technology was suited for recycling lithium ion batteries, with leach extractions of 100 percent for lithium, cobalt, nickel, manganese, and aluminium.

“There is currently no known commercial technology for large scale recycling of cathode materials of multiple chemistries. Spent cathode materials represent an ideal resource material to be processed with American Manganese’s proprietary hydrometallurgical process,” said Norman Chow, President of Kemetco Research Inc.

To date, American Manganese has submitted its patent application to the US Patent and Trademark Office and has also filed its Patent Co-operative Treaty (PCT) patent application. Working with the company contractor, Kemetco, American Manganese has completely funded the design and engineering of a pilot plant where the company will test its process on customer materials.

Investment Highlights

  • Applied for US provisional patent on recycling cathode material lithium, cobalt, nickel, manganese and aluminum
  • Holds patent in US, China and South Africa for production of electrolytic manganese metals from low-grade manganese deposits
  • Successful proof of concept for patent-pending recycling technology
  • Global EV market expected to grow from 2.6 million unit sales in 2015 to over 41 million in 2040, according Bloomberg New Energy Finance
  • EV batteries have an average shelf-life of only five to eight years
  • Demand for key materials outpacing supply, especially for lithium and cobalt
  • Recycling technology reduces the demand for new cathode materials
  • Providing a source of lower cost recycled cathode materials with the potential for higher profit margins for battery manufacturers.
  • Hydrometallurgical process that is easily scalable
  • Process applicable to multiple lithium ion battery chemistries
  • Source of cathode scraps from US recycler and ground active materials from lithium-ion battery recycler in Europe
  • Significant environmental benefits including:
    • Substantial reduction of landfill waste
    • Reduction of energy consumption and emissions of CO2 and other pollutants

Opportunity: Innovative Lithium-ion Battery Recycling 

The problem to solve

EVs have been determined as a key market designed to reducing harmful emissions across the world. EVs are fueled by lithium-ion batteries that typically have a five to eight year life. As the demand for EVs continues to grow, so does the demand for the elements used in the batteries, including lithium, cobalt, nickel, manganese and more. As such, the global supply for each of these has been significantly impacted, and there is an opportunity for renewable energy solutions aimed at recycling spent batteries as to contribute to the supply of battery metals.

Around the world, governments are starting to develop regulations aimed at spurring the development of recycling solutions from battery and EV manufacturers. China, for instance, has mandated that EV manufacturers need to have a solid reclamation and recycling plan for batteries. Regulations of this type are also being replicated in Europe, and some of Canada’s provincial governments are also making similar changes.

Developing a proprietary process

American Manganese has contracted Kemetco Research for the development of its proprietary hydrometallurgical lithium-ion battery recycling process. The process was tested and determined that it has the potential to conduct leach extractions of 100 percent for lithium, cobalt, manganese, aluminium and nickel.

“The American Manganese lithium reclamation process that we developed is the same technology used to extract base metals from low-grade ores,” Kemetco Research President Norman Chow told INN. “Since the cathode material is mainly a base metal with lithium embedded in the skeleton, we use the exact same hydrometallurgical process to recover the cathode material for recycling.”

The extracted base metals or lithium can then be re-dissolved into a solution that is reformed in a usable cathode powder. This then undergoes the same treatment process used by battery manufacturers. It is run through a heat treatment cycle, which helps form a base metal oxide skeleton or crystal structure. The skeleton is then charged, and the lithium moves into place, embedding itself into the skeleton.

In December 2017, American Manganese received a ‘New IP Development and Pilot Plant’ proposal from Kemetco. The proposal included objectives for developing new IP to recover copper and aluminum foils, and to recover graphite from anodes. The report also included the proposal to design, engineer and build a pilot plant that will be dedicated to obtaining scale-up data and test customer materials in a practical way.

In deploying this project, the company has further engaged Kemetco to assist in the development of three new IP extensions and in the pilot plant process.

“The demonstration plant would process battery cathode scrap materials at a nominal rate of 3 tonnes/day,” said American Manganese CEO Larry Reaugh. “Management’s engineering and financial analysis indicates a very economically robust project even at this small scale.”

As part of the company’s IP development program, American Manganese used cathode scraps to develop innovative technology that separates aluminum foils from the cathode material. This process will be incorporated into the company’s growing IP portfolio.

Currently, there’s no process out there that actually recycles 100% of cathode metals,” said Reaugh. “There are other companies out there that are recycling the lithium-ion batteries, but they don’t have the same recovery rates. Most reclamation comes from burning the batteries and getting a percentage of the cobalt back, the rest goes into slag.”

Management and Advisors

Larry W. Reaugh – President, CEO and Director

Larry Reaugh has 53 years’ experience in the mining industry and for the past thirty-seven years he has been the CEO and President of several exploration, development and production companies including 12 years in internet and technology breakthroughs listed on the TSX, TSX Venture and NASDAQ exchanges. Several of his companies have made significant discoveries, three of which (gold/silver) went on to be producing mines. Mr. Reaugh founded American Manganese Inc. in 1998 and has served as its President and CEO since that time. Through his career, Mr. Reaugh has raised in excess of $300 million.

Michael MacLeod, P.Eng., MBA – COO

Michael MacLeod has spent 40 years executing major capital projects and mine developments in the mining industry, including the Byron Creek coal mine expansion for Esso Resources Canada Limited and in-pit crusher/conveying system and Highmont concentrator re-location for Highland Valley Copper Ltd.

Andris Kikauka – Director

Andris Kikauka is a graduate of Brock University, St. Catharines, Ont., with an Honours Bachelor of Science Degree in Geological Sciences, 1980. He is a member of the Geological Association of Canada. He is registered in the Province of British Columbia as a Professional Geoscientist.

Andris has practiced his profession for thirty five years in precious and base metal exploration in the Cordilllera of Western Canada working for Anaconda Canada Exploration (1980-1984), Skyline Explorations, Inel Resources, Gulf International Minerals (1985-1989), in South America working for Carson Gold (1990), in Mexico and Guatemala working mineral exploration projects for Francisco Gold and Almaden Minerals (1996-2006) and for three years in uranium exploration in the Canadian Shield working for Rayrock Mines and Uran-Canada (1977-1979).

Ed Skoda – Director

Edward Skoda obtained a Diploma in Mining Engineering Technology from the Haileybury School of Mines in Ontario in 1971 and a Diploma in Business Management from the British Columbia Institute of Technology in 1979. Mr. Skoda has over 30 years of experience in the mining industry in which time he has worked on many national and international projects. During the past 15 years, Mr. Skoda has worked as a consultant and in a supervisory capacity as a shift boss, superintendent, or project manager for various mining and exploration companies. Based out of Guadalajara, Jalisco, Ed oversees all Mexico operations for SJ Geophysics Ltd.

Jan Eigenhuis – Director

Jan Eigenhuis is a former senior executive at Manganese Metal Company of South Africa (MMC). He currently acts as a consultant to the electrolytic manganese industry worldwide. It is notable that he counts MMC as well as the Chinese manganese producers as clients. Mr. Eigenhuis is a graduate of the University of Pretoria; B.Sc. (Chem. & Math.) and the University of South Africa; MBL (Master Business Leadership). He has 30 years of business experience in mineral beneficiation and in the electrolytic manganese metal industry.

Norman L Tribe – Director

Norman Tribe is the president and principal of N. Tribe & Associates Ltd a geological contractor serving the mining industry for fifty-eight years. Mr. Tribe has a total of 58 years’ experience in most phases of mining including underground grade control, mine development, mine evaluation, property evaluation, project management, project consultant, exploration management, plant design, exploration geology, reclamation and reporting to the various government entities and stock exchanges.

Kurt Lageschulte – Director

Kurt Lageschulte is a Partner and Senior Analyst at Broadbill Investment Partners, LLC in New York. Broadbill Partners is an investment firm with offices in New York, Florida and California and currently has $130 million of assets under management across four managed funds. Kurt is a founding partner at Broadbill, and was previously employed as a Senior Analyst with Aspen Advisors from 2002 to 2010. Kurt has worked as an advisor and active member of a number of committees. Most recently, he has advised the Special Committee of the Penn Treaty American Company board in a complex negotiation with industry regulators. Kurt’s experience in the energy, renewable and mining industries, coupled with significant expertise in the capital markets will enable Kurt and the Broadbill team to help American Manganese in the reaching of its goals in the coming years.

Shaheem Ali, BBA – CFO

Shaheem Ali is a finance and business management professional with 10 years’ experience in operations management, full cycle accounting, systems development and people management. Proven record of implementing financial and operational processes reducing operations costs and improved internal controls with Alderwoods Group Inc. where his experience includes governance and regulatory fund compliance with various states.

Teresa Piorun – Corporate Secretary

Teresa Piorun has been with the Reaugh Group of Companies for thirty years. Ms. Piorun is a senior corporate officer with wide-ranging responsibilities, serving as a focal point for communication with the board of directors, senior management and the company’s shareholders, and occupies a key role in the administration of critical corporate matters. She is the confidant and advisor to the CEO and other members of senior management, particularly on corporate governance affairs.

Shailesh Upreti – Advisory Board

As announced by New York Governor Andrew M. Cuomo on October 4, 2017, Dr. Upreti will lead an initiative to establish a lithium-ion battery giga-factory in New York.

Shailesh Upreti is a well-respected lithium-ion technology expert and inventor of multiple breakthrough technologies. An IIT Delhi graduate, Mr. Upreti has worked closely with Professor Stan Whittingham in the past and holds multiple US patents and their foreign equivalents in more than 30 countries. In addition to his technical degree he has a second masters in international business management in combination with extensive experience as an entrepreneur. Shailesh has successfully brought more than 5 different technologies to market including one in the material recycling space.

His 16 years of extensive experience includes bringing new products to market, business development, lithium-ion supply chain & industry networking, downstream processing and investigating organizational performance gaps. He is well integrated into the global battery industry and serves on various advisory boards. Shailesh is particularly adept in defining corporate commercial objectives, business support programs and achieving organizational goals while bringing new technology to market.

David Langtry – Technical Advisor

David Langtry has been a businessman since 1964 when he joined Langtry Agencies, a company which expanded nationally to become Langtry Industries and was sold in 2011 to ITOCHU, a Japanese conglomerate specializing in commodities. Mr. Langtry currently owns and operates Raider Hansen Inc., an industrial supplies company having 10 locations throughout British Columbia, as well as GRE Manufacturing, a glass recycling company. He also holds 10 worldwide patents. Mr. Langtry has a life time of experience in technology and financial markets.

Dan McGroarty – Strategic Advisor

Daniel McGroarty has consulted for nearly two decades to firms in the resource sector, with a focus on strategic and critical metals. He is principal of the non-profit American Resource Policy Network, a resource development think tank. He has served as a critical materials subject-matter expert for the U.S. GAO; testified before the energy and natural resource committees of the U.S. House and Senate; consulted to the Institutes for Defense Analyses, which provides research and analytical work to the U.S. Department of Defense for its National Defense Stockpile reports; and currently serves as Adjunct Professor at The George Washington University Graduate School of Political Management. Prior to establishing his consultancy, Dan served as Special Assistant to the President in the White House and as presidential appointee to two Secretaries of Defense.


 

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