PT Stern is at the development and funding stage of a processing plant to produce manganese sulfate and other manganese cathode battery materials at a planned facility in Indonesia. PT Mandala Erakovic will deliver 2,000 to 4,000 metric tons of 50% Manganese ore per year commencing 2024 as sole supplier of feedstock to the plant
The contract also gives Altilium Metals investment option into the proposed processing facility as well as marketing rights to 25% of the manganese sulfate or and other manganese cathode battery materials produced by the plant.
Manganese plays an important role in electric vehicle batteries and or other renewable energy storage. It acts as a stabilizer in the structure of NMC (nickel manganese cobalt) cathode materials and cathode materials are the key performing drivers for an EVs range.
The manganese sulfate market currently projected to be in a deficit basis the rush to electric vehicles, prices are likely to rise to support new refinery projects in order for supply to meet the significant increase in demand by 2024.