Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) is exploring an opportunity to produce high-purity manganese products in Canada for the North American market.
A scoping study is underway to evaluate a site in Bécancour, Québec, for the production of high-purity manganese products following discussions with cathode and battery manufacturers, and automotive OEMs in North America.
High-purity manganese
The Bécancour Project scoping study will evaluate the dissolution of high-purity electrolytic manganese metal (HPEMM) to produce a high-purity manganese sulphate monohydrate (HPMSM) powder and/or a high-purity manganese sulphate solution (HPMSS).
The scoping study will leverage the extensive process development and engineering work recently completed at the company’s Chvaletice Manganese Project in the Czech Republic.
Euro Manganese has an exclusive due diligence agreement on a strategic site at the Bécancour industrial park where a cluster of precursor cathode active material manufacturing (pCAM) plants are under development.
Rapid EV market growth
North America's electric vehicle market is experiencing rapid growth aided by the recent United States Inflation Reduction Act, which provides incentives for the localisation of battery production and battery raw material supply chains.
The resulting demand for North American high-purity manganese is expected to rise to approximately 200,000 tonnes per annum by 2031, yet there is no current processing capacity and production of battery-grade manganese in North America.
The dissolution plant would use HPEMM to produce HPMSM powder and/or HPMSS liquid solution.
The benefit of a HPMSS product is the ability to pump a solution directly to nearby pCAM manufacturers, removing the necessity to crystallise, dry and package a powdered HPMSM product, which is ultimately dissolved in water by the pCAM plants.
HPMSS, therefore, saves costs for both parties and reduces CO2 emissions.
Strategic production base
HPEMM production from the Chvaletice Project could initially supply the dissolution plant at Bécancour, providing a strategic production base in Canada for the North American market and allowing the company to capture additional margin for the HPEMM that is not currently planned to be processed through to HPMSM at the Chvaletice Project.
Euro Manganese has signed a three-month Land Access and Exclusivity Agreement with the Société du parc industriel et portuaire du Bécancour, a Québec state enterprise and owner of the proposed EMN 15-hectare land parcel within the Port of Bécancour.
This allows EMN to exclusively conduct due diligence on the land parcel, after which it has the opportunity to conclude an option agreement for the purchase of the site.
Euro Manganese’s Bécancour Project would complete the ternary cathode battery metal suite (nickel, manganese, cobalt) within the Bécancour industrial park.
Emerging hub
Bécancour is emerging as a hub for the supply of low-carbon battery materials to the EV supply chain in North America. It has a year-round deep-water port, extensive road and rail infrastructure, access to low-cost hydroelectric power, strong governmental support, sophisticated local service, equipment and reagent suppliers and a qualified workforce.
Euro Manganese president and CEO Dr Matthew James said: “The Bécancour Project advances Euro Manganese’s vision of building a multi-asset high-purity manganese business in strategic locations to supply the rapidly growing EV market.
“It also positions the company to take advantage of forecast market growth specifically in North America, which has been accelerated with the announcement of the US Inflation Reduction Act.
First mover advantage
“By developing what could be the first high-purity manganese processing facility in North America, Euro Manganese stands to benefit from this first mover advantage in supplying North American automotive OEMs, battery makers and cathode active material manufacturers with local and responsibly produced high-purity manganese products.
“Our flagship Chvaletice Manganese Project in the Czech Republic remains at the heart of our focus and strategy. The Bécancour Project is a natural extension of our work to date, especially as we are being actively encouraged as part of our ongoing offtake discussions to produce high-purity manganese products in North America.
“To address this demand, alongside the potential incentives to develop a secure EV supply chain in North America, we are taking action to explore this logical addition to our portfolio.”