Why does South Africa, with its vast manganese reserves, rely on outsourcing for manganese processing?
Manganese, a mineral abundantly found in the earth's crust, has a double role. It's well-known for its nutritional benefits and essential in the production of steel and batteries.
South Africa boasts the world's largest manganese reserves. However, only 2% of the manganese ore extracted from the country is refined there. The Manganese Metal Company aims to bridge this gap.
The refinery reveals it handles around 80,000 metric tons of manganese each year to produce high-grade electrolytic manganese metal (EMM). This alloying component is crucial for making steel.
The company's CEO, Louis Nel, has observed a noticeable rise in demand for refined manganese over the past decade, mainly because of the surge in electric vehicles (EVs) that require raw materials for their batteries.
"The flourishing EV market necessitates a higher demand for raw materials and subsequent batteries. Manganese is a fundamental part of those batteries," said Nel.
Challenges in Production
Manganese by-products are primarily found in the steel industry. Aloys d'Harambure, the executive director of International Manganese Institute, explains that only 2% of manganese is used for batteries, with only 1% of that going to rechargeable batteries.
The IEA revealed that demand for automotive lithium-ion batteries increased by 65% in 2022 due to a rise in EV sales. Additionally, the market share of the Chemistry combination for producing lithium-ion batteries, which includes lithium, nickel, manganese, and cobalt oxide (NMC), stood at 60% in the IEA report.
Manganese, according to Nel, "brings some thermal stability to the battery, which is a safety issue" and is more affordable than other battery-making minerals.
However, creating high-purity manganese sulfate for EVs is no easy task. The process requires high-purity manganese sulfate, which alarms battery manufacturers. D'Harambure points out that 90% of manganese sulfate is processed in China, where there's a push to develop chemical plants in other nations.
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"This coming year, we will likely see some production from South Africa and Mexico, with progressions in the US and Australia," he added.
While South Africa possesses vast manganese reserves and could become a leader in high-purity manganese sulfate production, d'Harambure emphasized that "electricity sector issues in South Africa" and "rising electricity prices" make it difficult to manufacture manganese chemicals and alloys there.
Moreover, he explained that South Africa has delayed the opening of manganese chemical processing plants due to unfulfilled local demand.
"It's more cost-effective to build the manganese chemical facility near the customer," said d'Harambure, "as transporting manganese to another country is not too costly, yet producing the chemical is a financial challenge."
The Creative Spirit
Nonetheless, the Manganese Metal Company desires to take advantage of the EV boom and develop its processing units. The company intends to establish a $25 million plant that can produce 5,000 metric tons of battery-grade manganese sulphate per year. Nel hopes to complete construction within 18 months and bring the products to market by late 2026.
Access to this vital metal sought by the US and Europe, Nel asserts, presents Africa with advantages and promises "considerable employment opportunities and economic growth."
The manganese mining industry employs over 20,000 South Africans as of 2022. Moreover, d'Harambure enlightens, the manganese industry's role balances several other green energy initiatives.
"Manganese is crucial for making solar panels and wind turbines. Moreover, it assists in treating wastewater and extracting pollutants from the soil and air," he said, emphasizing how the push for cleaner energy supports the manganese industry.
In short, the Manganese Metal Company is attempting to capitalize on the EV market and expand their facilities to process more manganese, both for steel production and for building batteries. Potential challenges include the production of battery-grade manganese sulfate and building facilities close to areas of demand, but the company's optimism persists, along with the promise of increased job growth and economic development for South Africa.
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Source: edition.cnn.com
