Manganese Market
New infrastructure projects are expected to increase demand for manganese, and the government’s $2 trillion plan is being touted as one of the most transformative efforts of the 21st century. But the mineral’s demand goes beyond infrastructure. It also finds uses in other industries, including battery manufacturing and the electric vehicle industry. For example, the demand for manganese will increase as electric vehicles and hybrid cars are developed. The battery industry is also expected to experience an increase in demand as well, thanks to future energy backup storage devices.
The steel industry expects a 2% annual growth rate in manganese. Its clean energy applications will drive demand. And the mineral is cheaper per ton than Cobalt. With that in mind, manganese is poised to be one of the key elements in the next-generation battery. However, the demand for manganese is expected to increase in the coming years due to its high value in the energy industry.
Manganese Market Analysis by Martin Kepman CEO of Manganese X Energy Corp
In addition to battery production, manganese’s price has skyrocketed after the COVID-19 lockdowns slowed down China’s mining process. The price of manganese per ton is also less than half of cobalt’s in world markets. In addition, manganese is an environmentally friendly investment, unlike cobalt, which poses serious logistics and ethical issues.
Manganese Market Analysis
In the end, demand for manganese is dependent on demand dynamics. With the global economy recovering rapidly from the COVID-19 lockdowns, China has enjoyed the opportunity to build its infrastructure and recoup the capital spent on it. As a result, it is an excellent future-friendly commodity. If mining companies can tap into this resource, the price may increase further. And with the price of manganese decreasing, the mining industry will be much more profitable than it was before.
As a result, China’s demand for manganese is expected to increase over the next five years, a trend that should benefit the supply of the metal. As the fourth-largest consumer of metal, it is essential for the steel industry to continue to meet its growing needs. It is also important in lithium ion battery production. So the demand for manganese has been increasing in recent years.
Although the supply of manganese has declined for several years, the metal has remained stable in recent years. The Chinese government has issued an executive order that has boosted Chinese imports of the metal. The Biden administration’s executive order, “America’s Supply Chains – a Primer on the Manganese Market” (Page 15 of the book) has helped make the metal more affordable to consumers.