The CEO of Manganese X Energy Corp (TSX-V:MN, OTCQB:MNXXF) has underlined the potential of the company's strategically located asset in New Brunswick Canada as demand for manganese for batteries grows and as US vehicle titan Ford recently launched its first electric delivery van.
Manganese is an essential component in the staple lithium-ion battery but is also found in the nickel-manganese-cobalt (NMC) battery - the other most common type, noted Martin Kepman, the company's CEO.
"There are plans to re-engineer the chemistry of the current NMC battery by eliminating cobalt and increasing the proportion of manganese in future lithium-ion nickel manganese EV batteries," he highlighted.
"Some of the reasons that make manganese potentially the mineral of the decade is it doesn’t have the ethical sourcing issues of mining cobalt in the Congo, where the majority of cobalt is produced.
"Economically, cobalt is 10-47 times more expensive than manganese to acquire, based on the commodity markets of fluctuating prices," he added.
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"Also, manganese decreases the combustibility of EV batteries, which is problematic with cobalt infused lithium-ion batteries. Our strategically located manganese property in Canada will provide EV battery manufacturers access to a domestic supply with less reliance on China imports."
Kepman also highlighted that Ford will be producing and selling 150,000 electric vans (dubbed the 'E-Transit') each year from 2023 and is forecasting a profit of at least $45 billion from its electric transit vehicle program.
Three of the thirteen gigafactories set to open in the USA in the next five years will belong to Ford, he told investors.
These gigafactories will focus on battery production for electric vehicles. Most of Ford’s existing electric vehicles use lithium-ion batteries, which are the most sustainable, energy-efficient batteries that modern technology currently has to offer.
Kepman noted that EV giant Tesla was "no longer the only player" in the electric vehicle sector, with most big-name automobile manufacturers across the world producing electric and hybrid models to keep up with demand.
Manganese X believes it is well positioned for supplying the North American supply chain, given that its 1,228 hectare (Ha) Battery Hill project in New Brunswick, Canada, is near existing infrastructure and 12 kilometres (km) from the US border.
It encompasses all or part of five manganese-iron zones, including Iron Ore Hill, Moody Hill, Sharpe Farm, Maple Hill and Wakefield.
Contact the writer at giles@proactiveinvestors.com