The qualification testing is an important aspect of the MOU signed earlier with C4V for a potential manganese offtake deal.
Manganese X Energy’s (TSXV: MN) shares soared on Thursday after its high-purity manganese sulphate (HPMSM) sample passed the initial phase of commercial-level qualification testing for EV battery cathode use.
“Achieving this milestone brings us one step closer to becoming the first publicly traded mining company in Canada and the US to commercialize high-purity, EV-compliant manganese,” Manganese X CEO Martin Kepman said in a news release.
The Phase 1 testing was conducted in-house at lab scale through New York-based C4V’s digital DNA supply chain qualification program, which consists of three stages. Manganese X’s sample is now moving onto the second phase to validate its long cycling performance and capacity retention of the cells.
In January, the parties entered into a non-binding memorandum of understanding for a potential offtake deal on Manganese X’s Battery Hill manganese mine project located in Woodstock, New Brunswick. The project, which is also prospective for iron, is host to one of the largest manganese carbonate deposits in North America, containing a measured and indicated resource of nearly 35 million tonnes grading 6.42% manganese and an inferred resource of 26 million tonnes grading 6.6% manganese.
A preliminary economic assessment in May 2022 outlined a low-capital manganese operation capable of producing 68,000 tonnes of high-purity material over a 47-year mine life. At a 10% discount rate, it 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 for battery-grade high-purity manganese sulphates.
C4V’s supply chain qualification program, said Manganese X, is an important aspect of the MOU as it moves the company closer to an offtake deal. C4V is currently involved in some of the world’s largest gigafactory developments, including Recharge Industries’ factory in Geelong, Australia, and the iM3NY gigafactory in the US.
The stock traded 23.1% higher at C$0.08 apiece by 3:40 p.m. in Toronto, with a market capitalization of C$10.7 million.
