Manganese Metal Company to Build $25 Million Battery-Grade Manganese Sulphate Plant in South Africa

The Manganese Metal Company, based in Mbombela, South Africa, has announced plans to construct a $25 million commercial plant to produce 5,000 metric tons of battery-grade manganese sulphate annually by 2026. The company aims to capitalize on the growing demand for electric vehicle batteries and leverage South Africa's vast manganese reserves.

Currently, only 2% of South Africa's manganese ore is processed locally, with the majority being exported. The Manganese Metal Company sees a significant opportunity in the increasing demand for refined manganese driven by the global growth in electric vehicle sales. Manganese is a key component in lithium-ion batteries used in electric vehicles.

However, the company faces production challenges, as 90% of the high-purity manganese sulphate required for EV batteries is currently processed in China. South Africa has the potential to become a leader in this space, but issues with the electricity sector and high electricity prices have hindered the local production of manganese chemicals and alloys.

Why this matters: The Manganese Metal Company's planned $25 million plant has the potential to position South Africa as a significant player in the global supply chain for electric vehicle batteries. This investment could contribute to the country's economic growth and support the transition to a greener economy.

The Manganese Metal Company is optimistic about completing the new plant within 18 months and bringing the products to market by the end of 2026. The company aims to capitalize on the growing demand for electric vehicles and the strategic importance of manganese in the green economy, as it is also essential for producing solar panels, wind turbines, and water treatment.

Key Takeaways

• Manganese Metal Co. plans $25M plant to produce 5,000 tons of battery-grade manganese sulphate
• South Africa has vast manganese reserves but only 2% is processed locally, rest exported
• Manganese is key for EV batteries, but 90% of high-purity supply processed in China
• Plant aims to capitalize on growing EV demand and manganese's role in green economy
• Project could position South Africa as major player in global EV battery supply chain