How to Invest in Manganese Stocks (Updated 2024)

What factors impact manganese supply and demand?

As mentioned, the steel sector accounts for most manganese demand, using it as a deoxidizing and desulfurizing additive and as an alloy constituent. Among other things, manganese can improve the strength, toughness and stiffness of steel. In turn, the steel sector is a key driver of the manganese price.

According to a report from Maximize Market Research, the global manganese alloy market is projected to reach US$29.21 billion by 2030; its growth will be driven largely by rising demand from the automotive industry and growing usage of manganese alloys in the Asia Pacific region.

The electric vehicle (EV) battery industry is the second largest consumer of manganese today, and many market watchers believe that demand from this sector could be set to increase in the future.

Manganese dioxide has long been used as a depolarizer in alkaline batteries, but this is not the manganese battery market that is now the most interesting. Attention is being drawn to lithium-ion battery chemistries that require manganese — such as lithium-manganese oxide batteries and nickel-manganese-cobalt oxide batteries.

“Several high-manganese rechargeable battery chemistries have been developed in recent years, but many will only enter mass production in Q4 2023 and 2024,” Andrew Zemek of CPM Group told INN. “This should reduce the current surplus of high-purity manganese sulfate and lift the prices from their doldrums.”

In these batteries, electrolytic manganese dioxide is used as a cathode material. Many investors who believe that battery sector demand for manganese will increase are optimistic that lithium-ion batteries that require manganese will become more common in the future.

“Project Blue foresees sustained growth in demand for manganese in EVs over the medium term, as sales of EVs are projected to increase significantly due to governmental pressure to transition to low-emission fleets,” the team told INN in an email.

While the steel and EV battery industries are the top consumers of manganese, other uses of manganese exist as well, with the metal turning up in chemicals and more.

Looking at supply, major producers have manganese-mining operations in Australia, Gabon, Ghana and China, as well as South Africa, which holds 37 percent of the world’s reserves. Global manganese production reached 20 million metric tons in 2023, a slight decrease of 200,000 metric tons from 2022, as per the US Geological Survey.

Manganese mining companies and junior manganese stocks

As the manganese story has picked up speed in recent years with its necessity to popular electric vehicle cathodes, more publicly traded companies are focused on manganese, offering investors more choices for exposure to the metal.

While a number of large companies are involved in manganese production, many of them are private. These are some of the major mining companies that produce manganese:

• Eramet (EPA:ERA) produces manganese ore from the Moanda mines in Gabon. Eramet is the largest producer of manganese worldwide and also produces manganese alloy at its plants in four countries.

• South32( ASX:S32,OTC Pink:SHTLF) operates the South Africa Manganese operation in South Africa's Kalahari Basin and has a 60 percent stake in the GEMCO manganese operations in Australia's Northern Territory.

• Anglo American (LSE:AAL,OTCQX:AAUKF) owns the remaining 40 percent of the GEMCO manganese joint venture in Australia.

Investors interested in smaller manganese companies may want to look at junior manganese stocks trading on Canadian, American and Australian exchanges. These are some of the options available to investors:

• ChemX Materials (ASX:CMX)is developing its Jamieson Tank high-purity manganese project in South Australia.

• Element 25 (ASX:E25,OTC Pink:ELMTF) is considering restarting operations at its Butcherbird manganese project in Western Australia.

• Euro Manganese (TSXV:EMN,OTCQX:EUMNF) is developing its Chvaletice manganese project in Czechia, which aims to recycle tailings from a past-producing mine to produce manganese and decontaminate the site.

• Firebird Metals (ASX:FRB) aims to produce high-purity manganese from its Oakover project in Western Australia, and to process it into battery-grade manganese sulfate.

• Giyani Metals (TSXV:EMM) has a portfolio of manganese oxide projects in Botswana, including its flagship K.Hill project, from which it plans to produce high-purity manganese sulfate monohydrate.

• Jupiter Mines (ASX:JMS) operates the Tshipi Borwa manganese mine in South Africa.

• Manganese X Energy (TSXV:MN,OTC Pink:MNXXF) is exploring its Battery Hill manganese project in New Brunswick with the goal of producing high-purity manganese for the North American market.

• OM Holdings (ASX:OMH,OTCQX:OMHI) is a vertically integrated manganese ore and ferroalloys company based in Singapore with global operations.

• RecycLiCo Battery Materials (TSX:AMY,OTCQB:AMYZF) recycles cathode materials from battery waste and upcycles them into lithium and battery cathode precursors.