By: OrePulse

South Africa's Manganese Metal Company has completed commissioning a plant in Mbombela to produce 6,000 tonnes a year of battery-grade manganese sulphate, as the country's manganese industry works to enter a battery-materials supply chain currently dominated by China.

The company is producing samples for prospective customers to test, with commercial sales targeted for the fourth quarter of 2027, according to the company.

China accounted for about 97% of global battery-grade manganese sulphate production last year, even though South Africa, Gabon and Ghana together produced about 73% of the world's mined manganese output, highlighting a gap between where the raw ore is mined and where it is processed into battery-ready material.

Manganese sulphate is a key input for manganese-rich cathode chemistries used in electric-vehicle and grid-storage batteries, including lithium manganese iron phosphate and nickel-manganese-cobalt formulations. Automakers and battery manufacturers outside China have been looking to diversify their supply of critical battery materials in recent years.

Analysts pointed to several obstacles facing Manganese Metal Company's push into battery materials, including limited non-Chinese capacity for precursor cathode active material, the high energy costs associated with the company's metal-to-crystal production process, and South Africa's elevated electricity prices and logistics difficulties.

Some prospective buyers have said they want non-Chinese sources of battery-grade manganese sulphate for geopolitical and supply-security reasons. However, that interest has not yet translated into signed supply contracts. Manganese Metal Company expects the customer approval process for its product to take six to 12 months.

The company is seeking outside financing for a second, larger plant, MTX-2, which would raise its total manganese sulphate capacity to 30,000 to 36,000 tonnes a year. Due diligence on potential financing is underway with South Africa's Industrial Development Corporation and the European Investment Bank, though no funding commitment has been made.

According to geological surveys, South Africa holds a large share of the world's identified manganese ore reserves, positioning the country as a potential long-term supplier of battery-grade material if it can close the cost gap with Chinese producers.

South Africa is the world's largest manganese producer, with mining concentrated in the Northern Cape province. Historically, the country's manganese industry has exported ore rather than processed, higher-value battery materials, a pattern the Mbombela plant is intended to help shift.