Element 25 Ltd (ASX:E25) is set to benefit from the strong demand growth forecast for high-purity manganese from the emerging battery revolution.
Element 25 recently changed its name from Montezuma Mining as part of its transition from a diversified explorer to the developer of a world-class manganese project.
The company owns the Butcherbird Manganese Project in Western Australia, the country’s largest onshore manganese resource containing 180 million tonnes grading 10.8% manganese.
READ: Montezuma Mining scoping study results support manganese mining operation
Demand for batteries is growing exponentially as global sales of electric vehicles are forecast to increase from 1.1 million in 2017 to 11 million in 2025.
By 2030 the increase of electric vehicles is expected to soar to a fleet of 30 million.
Cheapest solution for producers of battery technology
Current battery compositions contain various combinations of cobalt, nickel, manganese and aluminium.
Of these minerals, manganese offers the cheapest solution for producers of battery technology, being more than 43 times cheaper than cobalt.
Whilst electric vehicles are commonly considered key for increasing battery consumption, off grid power storage is also a key demand driver.
With the increasing push to reduce pollution, countries are increasingly turning to renewable electricity generation.
Manganese is a vital component in steel making with no apparent substitute. It is defined by the United States Geological Survey (USGS) as a ‘critical metal’.
Whilst manganese demand is commonly associated as being reliant on steel consumption and steel market forces, this paradigm could shift over time as battery technology demand grows.