Earlier this week, Umicore confirmed that it is starting the industrialisation of its leading manganese-rich HLM (high lithium, manganese) cathode active materials (CAM) technology.

Umicore already produces NMC cathode materials for high-performance, long-range EVs and is now setting it sights on commercial production of “HLM” CAM for EVs by 2026.  Umicore’s press release notes that HLM offers “…a better total cost of ownership than LFP with longer driving ranges, equivalent safety, much more reliable state of charge monitoring and better recyclability”.  It is expected that Umicore would manufacture the HLM material at its plants in Poland, South Korea, and Canada (under development). 

In 2021, Umicore and BASF entered into a non-exclusive patent cross-license agreement covering a broad range of cathode materials and their precursors, including HLM as well as NCM, NCA and NCMA.

The announcement can be seen as positive news for manganese sulphate demand, which is set to see double-digit growth in Project Blue’s base case.  Manganese’s growth potential in batteries is underpinned by its use across a range of existing (LMO, NCM) and promising future technologies including HLM, LMFP, and high Ni Mn-bearing formulations.  While consumption in LMO and NCM is ongoing (and growing), the timing of the commercialisation of the other technologies is uncertain.  Project Blue expects LMFP to gain traction over the coming years, but the high manganese formulations are not likely to take off until later in the decade. 

Also uncertain is the extent to which an ex-China supply chain for manganese sulphate can be developed.  At present, 97% of capacity is in China with only two producers of HP MSM based outside of China.  The Umicore news will be seen as positive by those looking to develop ex-China sources of supply, although these projects have numerous barriers to overcome, including attracting capital, technical challenges, and finding an offtaker to agree on a viable pricing structure.