It will remain a niche market compared to steel applications, but manganese is a premium market where battery-grade manganese products enjoy a much healthier margin than that of the traditional steel applications.
Up till now, lithium and cobalt have been riding the wave of Tesla and the broader electric revolution. But with more carmakers committing to turn a large proportion of their product line electric in the coming years, battery metals are under the spotlight. There is another metal, used widely as a battery component, that has received less notice from the markets: manganese (Mn) – a chemical element that is normally found together with iron – and it is finding a solid place in the race to provide battery technology.
Since the beginning of 2016, cobalt’s price has jumped 120%, lithium has moved up 77%, and manganese has recorded a 42% gain. While all three metals have seen their prices rise recently, it appears that manganese has been outshined by its two fellow EV metal counterparts. But this situation will soon change, as demand for manganese is set to outpace supply, especially for higher-grade materials found only in specific corners of the globe.
According to a Bloomberg NEF report, demand and consumption of battery metals is expected to grow ten-fold by 2030, and manganese demand from the battery sector is likely to ride this wave for years to come. Clean TeQ Holdings Ltd CEO, Sam Riggall, was quoted, saying, “With ‘mind-blowing’ projections from the auto industry on its future raw material needs, the best solution could be for electric vehicle makers to invest directly in mining operations.
“Having to invest upstream is not what a car company wants to do, we understand that, but the rules have changed,” Riggall added. “We’re building a supply chain that’s never existed before, for a range of metals that have never been needed before by this industry.”
Manganese turning tradition on its head
Manganese is an abundant resource that has numerous applications – the best-known being steel and metal alloy making, in which manganese improves the strength and the properties. Therefore, 90% of all manganese consumed goes into steel as an alloying element.
Despite its ubiquity, manganese is rarely found in high enough concentrations to form an ore deposit. Of the hundreds of minerals containing manganese, only around 10 are of mining significance. Global manganese reserves are predominantly located in South Africa, Gabon, Brazil, and Australia, which combined, supply over 90% of the global consumption. According to the US Geological Survey’s (USGS) Mineral Resources Program, the fact that most of the world’s manganese is produced by just a few countries, the USGS has deemed manganese a ‘critical mineral’. A critical mineral is one defined as being essential to the economy, as well as being at significant risk of incurring supply interruptions. The USGS has also singled out manganese because of its importance due to its increasing use in emerging technologies.
Supply will be a significant factor in the drive towards the reliance on manganese, as it will drive the cost of the battery pack down, and as a result, bring the total cost of ownership of a battery-powered electric vehicle closer to that of an internal combustion engine vehicle.
Non-metallurgical use for manganese in batteries
The most important non-metallurgical application of manganese is in batteries. Both disposable and rechargeable batteries use various forms and quantities of manganese in their construction.
There has been significant growth in the manganese market due to its applications in clean energy. More specifically, the growing use of nickel-metal hydride (NiMH) electric vehicle batteries and lithium-ion (Li-ion) batteries will be major catalysts for manganese demand.
The newest up-and-coming technology to use manganese is the so-called lithiated manganese dioxide (LMD) battery. A typical LMD battery uses 61% of manganese in its mix and only 4% lithium. LMDs have numerous benefits, including providing higher power output, thermal stability, and improved safety compared to regular lithium-ion batteries.
The chemistry behind it
A battery cell is the basic unit made from cathode, anode, and electrolyte. A battery module is a group of battery cells that are electrically and physically connected to each other to perform as a combined unit. A battery pack is multiple battery modules connected together and managed via a battery management system (BMS), and typically includes a cooling system and some other components.
In terms of chemical composition, there are six types of lithium-ion batteries commercially available today, of which manganese is an essential element in two of the six battery types: LMO (Lithium Manganese Oxide) and NMC (Nickel Manganese Cobalt), with the latter being the most prominent due to its balanced performance. The NMC battery is frequently referred to as the ‘all-rounder’ with good energy density, power output, thermal stability, charging time, and shelf life.
- Lithium-Manganese-Oxide (LMO) cathode
LMO batteries are notable for their high thermal stability, and are safer than other types of lithium-ion batteries. That is why they are often used in medical equipment and devices, and to power traditional phones and laptops, and EVs. Macquarie Research listed the market share of LMO cathodes in EVs in 2015 at 21%. However, market participants indicated that it has dropped since then, to the benefit of NMC cathodes.
LMO cathodes used in powering phones and laptops mostly use low-grade EMD (Electrolytic Manganese Dioxide) as a starting raw material, while high-grade EMD, or tri-manganese tetra oxide (Mn3O4), is consumed to make manganese oxide, which is then used in LMO cathodes for EVs. LMO cathodes usually contain around 60% manganese.
- Nickel-Manganese-Cobalt (NMC) cathode
NMC cathodes (also called NMC for Nickel-Manganese-Cobalt) are used to power phones, e-bikes, power tools, laptops, and EVs. And there’s a game-changing application of manganese worth mentioning: off-the-grid power. Tesla and its Powerwall batteries are breaking ground in this arena, and the market is only poised to grow.
The manganese content of an NMC cathode depends on its formulation, based on the proportion of each metal (nickel-manganese-cobalt).
A standard NMC lithium-ion battery is called a 111, meaning it uses 1 third nickel, 1 third manganese and 1 third cobalt. But in an NMC 622 cell, the cathode is roughly 60% nickel sulphate, with the remainder split equally between manganese and cobalt. The main goal of battery chemists is to reduce the use of cobalt, as it is expensive and in limited supply with significant risks threatening the security of that supply. The Democratic Republic of Congo – plagued by decades of corruption and violence – produces more than half of the world’s supply. Rising demand amid the electric-vehicle boom and a lack of major alternative sources has seen prices more than triple since the start of 2016.
Reducing the quantity of nickel by replacing it with manganese
Nickel supply also concerns cathode manufacturers, as only a quarter of the nickel ore currently produced can meet the standards required for processing ore into nickel sulphate for cathode production. Nickel prices could become too high, as cathode manufacturer BASF forecasts EVs to account for up to half of nickel demand by 2025.
To significantly reduce the quantity of nickel and cobalt in its NMC cathodes, BASF aims to create ‘manganese-rich’ cathodes in the longer term, according to BASF’s senior vice-president, Hartmann Leube. But this will require extensive, costly research and development.
Tesla uses an NCA battery for its Model S, but is looking at an NMC combination going forward, with the 811 battery tipped as the favourite, according to market sources. These battery cells are leading the way in energy density and already have much lower costs than mainstream battery technology. However, the 811 formulation tests have not been very successful so far, so the viability of this NMC cathode with high nickel Looking at the different cathode chemistries, NMC batteries will probably continue to be favoured over LMO batteries. The expectation is that NCM523 chemistry will become the dominant cathode in the coming years, which would drive manganese demand.
Manganese demand, from lithium ion batteries is expected to grow at a compounded annual rate of 23% from now until 2027. This growth will be largely underpinned by demand for NMC cathodes, driven by demand from the automotive sector.
