The title says it all "OMH Manganese NEXT big metal in...

The title says it all "OMH Manganese NEXT big metal in lithium-ion batteries"

Riding the battery material boat with manganese

The price action on battery metals has reached near-ludicrous levels this year; the global expectation of a new world in which all private vehicles are electric is becoming ever-more realised, and the cost of the associated materials is climbing rapidly. But not in all cases. Lithium and cobalt may have bust through the top of the chart, but manganese has experienced somewhat of a quieter growth. A smorgasbord of factors will change this in the very near future, making manganese the only remaining battery metal with major growth potential.

Unlike steel demand, which is renowned for being steady, the supply of manganese is declining; in 2016, the USGS estimated that the world produced 8.6% less manganese than in 2015, yet the gulf between manganese production and consumption in China, for example, has been widening since 2001, and demand for imported manganese ore in China more than doubled between 2006 and 2016. There has rarely been more opportunity to enter the manganese supply chain than exists today.
Towards the end of last year, manganese prices surged in response to a rapid decline of industry stock levels. These were largely caused by producers cutting output in response to the previous year’s low prices combined with logistical problems in South Africa as well as renewed demand from China. In 2017, however, prices have taken the market by surprise by continuing to rise.
This could be due, in part, to manganese’s critical role in the production of batteries. Many people are aware of the requirements for lithium and cobalt in modern portable technologies, but manganese has flown a little under the hype-radar over the last few years and only seems to be catching up more recently, and at a slower pace. The need for battery metals is reaching fever pitch, and new patents involving these crucial ingredients are emerging every month.

Manganese is not thought of by many people in the same breath as say iron and gold as an interesting or useful substance, but that bland rep looks set to change as new uses particularly in battery manufacturing skyrocket.

Traditionally, lithium and cobalt have dominated the battery industry, but manganese promises to be a show stealer in coming years. As the clamor for environmental friendly electric vehicles takes hold, a looming shortage of battery metals has seen the prices of nickel and cobalt shatter through the roof. The value of manganese has however been less pronounced and this presents an opportunity for investors to cash in once the expected price surge hits full gear.

NEW BATTERIES RELIANT ON MN
New battery technologies increasingly reliant on manganese as a critical component have continued to emerge, with NMC (Lithium Nickel Manganese Cobalt Oxide) and lithium-manganese configurations helping to bring costs of batteries down.
Demand is also being driven by its use in mobile devices and in agricultural activities as a soil enrichment nutrient for crops. The micronutrient market is expected to grow to $7.7 billion by 2020.
Manganese, an important ingredient for plant photosynthesis is one of the most important of these micronutrients, having been to be capable of increasing crop yield by up to 30%.

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Obviously, OMH will do well with its Bootu Creek mine, however nearly all manganese produced will be used at its OM Sarawak smelting facility.
OMH also has a 26% stake in Ntsimbintle who own the majority share of the Tshipi manganese mine.
The big winner will be Tshipi in South Africa, currently the worlds largest producing manganese mine.