On the supply side there are reports that manganese ore bodies are shrinking in China. It is reported that if no new resources are found, China may lose 500-700 thousand tonnes of capacity in the next 3-5 years.
Approximately 90 percent of manganese is consumed in steel production. Steel production is forecast to grow this year by seven percent. Recently Lakshmi Mittal, the CEO of the world's largest steelmaker ArcelorMittal (NYSE: MT) stated, “Any substantial slowdown is still many years away.” The added demand from the steel industry coupled with new demand from batteries will require significant tonnage to be supplied to the market.
As manganese battery technology improves it will bring down the cost, and increase the range of electric vehicles. This is where Jevons Paradox may come into play. The paradox states as efficiency increases, so grows the demand for the resource used because of reduced cost.
As these emerging technologies increase the efficiency of electric vehicles it follows suit that the market will demand even more electric vehicles. Also, the potential for these batteries to be used in mobile electronics could open a truly massive market, requiring additional supply of the metal. The future for manganese batteries looks bright.Manganese Battery Technology from Manganese Investing News