Manganese has emerged as a critical component in lithium-ion battery cathodes, particularly in nickel-manganese-cobalt (NMC) formulations, where it contributes to structural stability, energy density, and cost efficiency. Unlike cobalt and nickel, manganese is more abundant and less expensive, making it an attractive material for reducing battery costs while maintaining performance. However, its pricing trends, supply chain dynamics, and processing requirements significantly influence the stability and economics of NMC cathodes. This article examines manganese pricing fluctuations, their impact on NMC cathode production, and the strategies being developed to secure sustainable manganese supplies for the battery industry.

Manganese is the fifth most abundant metal in the Earth’s crust, with global reserves estimated at over 1.5 billion metric tons. This abundance contrasts sharply with cobalt and nickel, which face supply constraints due to geopolitical risks and concentrated production in a few countries. Manganese’s relative abundance has historically kept its price low compared to other battery metals. Over the past decade, manganese prices have generally ranged between $1,500 and $2,500 per metric ton, while cobalt and nickel have experienced much higher volatility, with prices sometimes exceeding $80,000 per metric ton and $20,000 per metric ton, respectively. This cost advantage makes manganese a key enabler of affordable NMC batteries, particularly in mid-range and high-volume applications like electric vehicles (EVs) and grid storage.

The role of manganese in NMC cathodes extends beyond cost reduction. In NMC chemistries such as NMC 532, NMC 622, and NMC 811, manganese stabilizes the cathode structure by mitigating the reactivity of nickel, which is prone to thermal degradation. Manganese’s ability to suppress oxygen release during high-voltage operation enhances battery safety and cycle life. However, the precise ratio of manganese in NMC formulations must be carefully balanced. Too little manganese can compromise structural integrity, while excessive amounts may reduce energy density due to manganese’s lower specific capacity compared to nickel.

Despite its abundance, manganese supply is not without risks. The majority of high-purity manganese suitable for battery applications is sourced from a limited number of countries, including South Africa, Gabon, Australia, and China. South Africa and Gabon alone account for over 60% of global manganese ore production. This concentration raises concerns about supply chain vulnerabilities, particularly in the event of geopolitical disruptions or export restrictions. Additionally, processing manganese into battery-grade manganese sulfate requires specialized refining capacity, which is currently concentrated in China. This dependency on a single processing hub introduces logistical and pricing risks for battery manufacturers outside China.

Recent trends in manganese pricing reflect broader market dynamics in the battery sector. As demand for NMC cathodes has grown, particularly for EV batteries, manganese prices have seen moderate increases. However, these increases have been tempered by the metal’s abundance and the ability of producers to scale supply relatively quickly. Unlike cobalt, which has faced severe supply constraints due to artisanal mining issues in the Democratic Republic of Congo, manganese mining is predominantly large-scale and industrial, reducing the likelihood of sudden price spikes. Nevertheless, the growing demand for high-purity manganese sulfate has led to tighter markets, with prices rising by approximately 15-20% between 2020 and 2023.

To mitigate supply risks, battery manufacturers and mining companies are exploring several strategies. One approach involves diversifying manganese sourcing by developing new mining projects in stable jurisdictions. Australia, for example, has seen increased investment in manganese mining and refining projects aimed at supplying the battery market. Another strategy focuses on improving manganese recovery from existing mining operations, reducing waste, and increasing the yield of battery-grade material. Recycling is also gaining attention, though manganese recovery from spent NMC batteries is still in its early stages compared to cobalt and nickel recovery.

Technological advancements in cathode design may further influence manganese demand. Some researchers are investigating higher-manganese NMC formulations, such as NMC 433 or even manganese-rich cathodes, to reduce reliance on nickel and cobalt. These developments could drive additional demand for high-purity manganese, potentially tightening supply in the long term. However, the scalability of manganese mining and refining operations suggests that supply can keep pace with demand if investments in production capacity continue.

The environmental and social governance (ESG) aspects of manganese production also play a role in its adoption. While manganese mining has a lower environmental footprint compared to cobalt mining, concerns remain about water usage, energy consumption, and worker safety in some regions. Companies are increasingly prioritizing responsible sourcing practices, including adherence to international standards like the Initiative for Responsible Mining Assurance (IRMA). These efforts are critical to ensuring that manganese remains a sustainable and ethically sourced material for the battery industry.

In conclusion, manganese’s role in NMC cathodes is pivotal for both cost stability and electrochemical performance. Its relative abundance and lower price compared to cobalt and nickel make it an essential component in reducing battery costs while maintaining safety and energy density. However, supply chain concentration and processing bottlenecks present risks that require proactive mitigation strategies. By diversifying supply sources, investing in refining capacity, and advancing recycling technologies, the battery industry can secure a stable and sustainable manganese supply chain. As the demand for high-performance batteries continues to grow, manganese will remain a key enabler of affordable and reliable energy storage solutions.