Manganese X signs MOU with US battery tech firm for potential offtake deal
C4V is currently involved in some of the world's largest gigafactory developments.
Manganese X Energy (TSXV: MN) announced Wednesday it has signed a memorandum of understanding (MOU) with US renewable battery technology firm C4V that could lead to a potential offtake deal on the company’s Battery Hill manganese project located in Woodstock, New Brunswick.
Manganese X says the MOU, which is non-binding, is based on the potential supply of high-purity manganese sulfate monohydrate (HPMSM) for making electric vehicle (EV) batteries. A sample of the product is currently being pre-qualified by C4V for its gigafactory joint ventures.
The sample was produced as part of Manganese X’s pilot plant project using its patent-pending manganese purification technology to process Battery Hill manganese carbonate into EV-compliant (HPMSM) as a pre-curser to the cathode. The pilot is led by metallurgical research authority Kemetco, situated in Richmond, BC.
C4V is currently involved in some of the world’s largest gigafactory developments, including Recharge Industries’ gigafactory in Geelong, Australia, and iM3NY’s gigafactory in the US.
Chief executive Martin Kepman said the MOU represents “a significant step” in Manganese X’s mission to become a sustainable and reliable North American supplier of HPMSM, and could even potentially lead to being a worldwide supplier.
“Through this MOU, we can ensure our HPMSM meets C4V specifications with the goal of progressing towards a binding offtake deal for our Battery Hill manganese,” he added.
The 12.3-sq.km Battery Hill property consists of five manganese-iron zones that constitute one of the largest manganese resources in North America. A preliminary economic assessment in May 2022 outlined a low-capital manganese mine operation capable of producing 68,000 tonnes of high-purity material over a 47-year life.
At a 10% discount rate, the project would generate a post-tax net present value of $486 million and a post-tax internal rate of return of 25%, using a base case market price of $2,900 per tonne for battery-grade high-purity manganese sulphate. Capital costs are estimated at $350 million, with a payback of 2.8 years.
“Our timing is excellent as EV car manufacturers ramp up their efforts to secure long-term supplies of high-purity manganese. Manganese is consistently in the news as a battery chemistry of choice. Not only is it less expensive to process, manganese provides the EV battery with greater energy density and rechargeability, as well as a longer life cycle,” Kepman noted.
In September 2023, the company revealed that its first high-purity HPMSM samples were being readied for distribution to various EV original equipment manufacturers and EV cell manufacturers. These samples were earmarked for comprehensive testing to ensure compliance with EV battery standards.
Shares of Manganese X Energy were up by 10.5% by midday Wednesday on the MOU announcement. The company’s market capitalization was C$14.4 million ($10.8m).