Manganese X Energy Corp.

08/31/2021 | Press release | Distributed by Public on 08/31/2021 08:08

Martin Kepman, CEO, Explains Why Investors Should Be Interested in Canadian Manganese Deposits

Manganese as an essential component in steel production is poised to replace cobalt in lithium ion batteries, manganese a future-friendly investment along with being ecologically green friendly.

Martin Kepman, CEO of Manganese X Energy

Manganese is the fourth most widely used metal globally, with 90% of usage being attached to steel and development industries. China is the world's biggest purchaser of manganese.

The cost of mining manganese, however, has consistently been volatile throughout the past several years because of ethical issues in sourcing or the use of selenium (a highly toxic mineral) in processing high-quality manganese.

Manganese is an important component of the steel production process, which makes it extremely relevant to the vast majority of production industries, which rely heavily on steel. It is also projected to replace cobalt in lithium ion battery production because it is less toxic and more economical to produce.

'We foresee greater demand for manganese arising from electric vehicle EV expansion, resulting in an upward price for manganese,' explains CEO of Manganese X Energy, Martin Kepman. Reasons for increased future demand include plans by Tesla and Volkswagen's respective plans to open multiple gigafactories across the world, in addition to Ford and GM's investment in EV models. A-Forecasts predict a 23% increase in demand for manganese each year until 2030.

Significant mining developments in South Africa, Ghana, and Gabon may have led to an oversupply in the manganese market via earlier expansion in Chinese port stockpiles, 'forcing downward pressure' on the price of manganese in 2019 and into mid-2020, according to a 3030 Roskill market report on the metal.

In mid-2020, a brief spike in the price of manganese followed COVID-19 lockdowns, which slowed the manganese production process. The mineral's unique supply and demand dynamics mean that 'investing in manganese could be a future-friendly mining idea,' notes Kepman.

'Manganese enhanced batteries are more robust, higher in density and much less toxic than cobalt. Manganese is currently more affordable than cobalt per ton, at less than a third of the price of cobalt on world markets. All this without the mining logistics and production issues associated with cobalt, making it an ethically, environmentally, and economically viable investment,' states Martin Kepman.

The choice of industry to move to manganese instead of cobalt for their batteries is an obvious one: manganese creates better performing, and more ethically sourced batteries at a fraction of the cost.

'Manganese X Corp expects a huge development in the manganese market because of its demonstrated value in clean energy applications, Mr. Kepman concludes. Moreover, we expect the increased proportions of manganese projected to be used for nickel-metal hydride (NiMH) and lithium-particle (Li-particle) batteries to be significant and will affect all future rechargeable batteries, EV and Hybrid electric vehicles and energy backup power storage industries.'

Web Resource

For more information on the supply and demand dynamics of cobalt and answers to essential questions for investors, read Mr. Kepman's full discussion of the current manganese market.