Manganese X Corp. Submission: Let’s Talk Canada’s Critical Minerals list and Methodology
Let’s Talk Canada’s Critical Minerals List and Methodology
Our company, Manganese X Energy Corp. welcomes the Government of Canada’s commitment that Canada’s list of critical minerals is updated in a fair and transparent manner. We agree with the Government’s criteria used to define Canada’s critical minerals, as well as the current list of 31 minerals, however, we feel that more attention should be given to manganese. Our comments follow.
Let’s Talk Manganese
Manganese X appreciates and understands that manganese is already on Canada’s list of critical minerals. However, it is not on the list of six minerals – lithium, graphite, nickel, cobalt, copper, and rare earth elements – which were initially prioritised and targeted for focus and investment.
We strongly believe, for the reasons that follow, that manganese should join the top six prioritised targeted critical minerals, and that the “Group of Six” becomes the newly formed „Group of Seven“ critical minerals in Canada. Manganese X appreciates the opportunity to respond to our Government’s consultation process and respectfully requests that serious consideration be given to adding Manganese to the priority targeted list of critical minerals.
As an aside, we would be happy to contribute further in order to enhance our Government’s understanding of the importance of manganese which has the potential to improve the density, capacity, rechargeability, safety and longevity so as to achieve the “Holy Grail” of the 1000 mile EV vehicle range.
Please find below our company’s feedback on the five criteria used to define Canada’s critical minerals and why manganese should help form the “Group of Seven”.
Essential to Canada’s economic or national security
- A Canadian supply of high purity manganese is critically important in supporting the North American automotive and energy storage industries, as well as the country’s transition to electric vehicles (EV) and other green energy initiatives. o High purity manganese-based chemistries are currently used in over 57% of EV battery production in the USA and this percentage is expected to increase.
- Experts predict that there will be a shortage of high purity manganese to support Canada’s supply chain of this important mineral.
- A continuous supply of manganese sulfate is also critically important as a component in livestock feed and fertilizer to support the Canadian and Global food supply and production.
- Manganese X’s Battery Hill manganese ore deposit in Woodstock, New Brunswick is one of the largest carbonate deposits in North America and has the potential to be a substantial contributor to the supply chain of high purity manganese, essential to support the EV and energy storage industries.
- Bringing the mine into production contributes to the Canadian economy through employment, using local rural and urban communities of the region to provide a large base of skilled trades, professional and service sector support for exploration and resource development.
- Battery Hill’s forty plus year mine life represents a long-term economic contribution to Canada.
Required for our national transition to a sustainable low-carbon and digital economy
- High purity manganese is one of the critical building blocks for the low-carbon economy. Manganese is an essential component of advanced technologies, such as EV batteries, renewable energy systems and other clean technology value chains.
- High purity manganese is needed to meet newly announced Government of Canada proposed regulated sales targets for zero-emission vehicles. As noted in criterion one, over 57% of EV battery production in the USA uses high purity manganese-based chemistries, and this is increasing.
- Manganese continues to be recognized as an integral mineral in the EV battery cathode chemistries as it is very cost effective and has the potential to improve density, capacity, rechargeability, safety and longevity.
A sustainable and strategic source of critical minerals for our international allies
- The United States, Britain, the European Union, Australia and others considered Canada’s international allies, have all included manganese on their own critical minerals lists.
- New Brunswick, Canada hosts major sedimentary carbonate manganese deposits, that are currently being evaluated for production, including that of Manganese X’s Battery Hill project. These deposits could supply much of the high purity manganese required for the North American and European electric vehicle battery/renewable energy value chains.
- The global share of High Purity Manganese using batteries among all of the lithium-ion batteries is expected to grow from 44% in 2021 to 48% by 2025; ln Europe this percentage could be as high as 60-70%, and in North America, high purity manganese using batteries is expected to be higher – up to 90%.
- Prioritizing high purity manganese would ensure a Canadian source with strong environmental, social, and governance credentials.
Mineral supply is threatened
- High purity manganese supply is controlled by China which currently produces 90- 94% of all high purity manganese utilized in the production of electric vehicle (EV) batteries. China is also a major supplier of high purity manganese used as a component in livestock feed.
- There is currently no high purity manganese production in North America.
- This over concentration in controlled supply results in the supply chain being highly susceptible to disruption and manipulation.
- Experts predict that there will be a shortage of high purity manganese. By 2030, high purity manganese demand should increase 10 fold, representing a forecast deficit of needed production of high purity manganese exceeding supply by many times.
- To meet the increase in demand, high purity manganese global production must rise from the current approximate 127 kt/a (manganese contained in HPEMM and HPMSM) to 1,127 kt/a by 2030 and 1,680 kt/a by 2035. There will be serious challenges meeting this demand as there is not enough high purity manganese projects in the pipeline to meet even the 2030 demand.
- With the major sedimentary carbonate manganese deposits located in New Brunswick, Canada could potentially supply much of the high purity manganese required for the North American and European electric vehicle battery/renewable energy value chains.
The mineral has a reasonable likelihood of being produced in Canada
- There is currently no production of high purity manganese in North America.
- In Canada, New Brunswick hosts major sedimentary carbonate manganese deposits, including that of Battery Hill, that are currently being evaluated for production by a number of Canadian mining companies including that of Manganese X Energy Corp.
- These deposits are “world class” in size and have the potential to supply much of the high purity manganese required for the North American and European EV battery renewable energy value chains.
- With Government initiatives and further exploration for this strategic critical mineral in New Brunswick and other Eastern Canadian Provinces, Canada has the potential to be a global producer of high purity manganese.
- In North America alone, there have been many announced plans to build Gigafactories by 2030 with most of these located in the eastern states, ensuring the supply chain is economically accessible. These Gigafactories are estimated to require 750 kt/a of high purity manganese by 2031.
- There will be huge demand for high purity manganese from major international EV and cathode makers which are continuing to make commitments to opening multi-faceted EV/battery hub facilities, for example in Saint Thomas, Ontario – including the likes of Volkswagen, NextStar Energy Inc., Stellantis, Ford, Umicore, etc. And in Bécancour, Quebec, companies such as BASF SE, Vale SA, General Motors, Ford, POSCO and others are setting up battery manufacturing facilities – some will start production as early as 2025. Estimated investment for these two battery hubs are in the 35 billion dollar range.
About Manganese X Energy Corp.
Manganese X’s mission is to advance its Battery Hill project into production, thereby becoming the first public actively traded manganese mining company in Canada and US to commercialize EV Compliant High Purity Manganese, potentially supplying the North American supply chain. The Company intends on supplying value-added materials to the lithium-ion battery and other alternative energy industries, as well as striving to achieve new carbon-friendly more efficient methodologies, while processing manganese at a lower competitive cost.
For more information visit the website at www.manganesexenergycorp.com.
ON BEHALF OF THE BOARD OF DIRECTORS
CEO and Director
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This news release contains certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operations and activities of Manganese X, are forward-looking statements. Forward-looking statements in this news release relate to, among other things, the Company’s exploration plans, assay analysis and results therefrom, and the upcoming Pre-Feasibility Study. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or “should” occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Manganese X, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. These risks, as well as others, are disclosed within the Company’s filings on SEDAR, which investors are encouraged to review prior to any transaction involving the securities of the Company. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. Manganese X does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws.