![Manganese Mine](/media/xh1p5vz3/manganese-mine.jpeg)
A number of products have seen rapidly rising prices over the last few months. Gold, olive oil, copper and cocoa have all experienced significant price rises.
The latest commodity – the little-known metal of manganese – has become the latest to experience this phenomenon.
Painting
Prior to its discovery by Johann Heinrich Pott in 1740, manganese was used in cave paintings and glass making.
Manganese is used for a variety of things. It is present in lots of foods, can be used as a dietary supplement and is currently being tested for use in promoting bone health and treating diabetes.
However, its most important use is manufacturing, as part of the battery and steel production process. Manganese Metal Company CEO, Louis Nel, told CNN that the last decade had seen a “significant” increase in demand for refined manganese, in part due to the growing need for lithium-ion batteries in electric vehicles (EVs):
“With the growth in EV sales globally, that requires raw materials and batteries. Manganese is a key component in those batteries. So of course, with the uptick in EVs, the raw materials are pulled along.”
It is also used in steel and aluminium production. In particular, manganese helps to prevent corrosion and avoid “hot shortness” in steel, where some alloys can fracture during the production process.
Global production
As with many raw materials, China is the top global producer, with South Africa and Australia not far behind. In total, over 30 countries mine for the metal, including France, Gabon and Brazil.
Despite its dominance, China imported 31.35m tonnes of manganese ore in 2023 to feed its construction and automotive industries.
China’s uncertain economy has affected prices in the past, as a cratering housing market reduces the need for steel and other metals.
Spiking prices
Despite ongoing economic issues in China, prices of high-grade manganese ore have almost doubled since the start of 2022, rising 92% in total. This month, prices approached the highest level since 2018.
By comparison, copper and gold, which had both seen massive market spikes recently, have risen by 15% and 12% this year, respectively.
This is partly because of the physical impact of climate change. One of the world’s leading manganese mines in Australia was damaged in March this year, with operator Groote Eylandt Mining Co. saying that export sales would remain suspended until Q1 of 2025.
‘Extensive’ damage
Bulk Carrier MV Anikitos was driven into the site’s key wharf during Cyclone Megan, reportedly causing “extensive” damage to port facilities at the mine.
Benchmark Mineral Intelligence analyst Zach Parsons told Mining.com that the prices had taken a while to filter through to the market due to stockpiled resources elsewhere. The shock had hit iron ore prices in April, slowly working their way through to other manganese products.
Parsons said that this was likely to continue until the Groote mine was brought back online.
The move caused a knock-on impact further down the chain, with miners Element25 and Jupiter seeing increased profits from the metal and ordering previously dormant mine operations to resume.
“Miners who were already planning to commence operation might move their timetable up to take advantage of higher prices this year, but this is a small number of producers that would be insufficient to bridge the supply gap.”