EMN's Manganese Project selected for Inter-Governmental Support
Today, our European and North American High Purity Manganese Investment - Euro Manganese (ASX: EMN) - announced that its Chvaletice project has been announced as a project to be supported under the inter-governmental Minerals Security Partnership.
A link to the relevant press release can be found by clicking on the image below:
We think the direct mention of EMN’s projects in BOTH the Czech Republic and Quebec, Canada bodes well for the company as the EU and the US seek to become more aligned on supporting critical minerals projects.
Below is an excerpt from the press release (we also like that EMN’s project was the first mentioned):
The Inter-Government Minerals Security Partnership (MSP) is an alliance of 13 countries and the EU that was created with the goal of encouraging public and private sector investment in the critical minerals supply chain with a particular focus on sourcing minerals from companies with high ESG standards.
Noting that China is responsible for ~97% of high purity manganese in 2022, EMN’s project feels well suited to farthing the MSP’s goals as they seek secure and diversified supply chains for battery materials.
Of the 17 projects the MSP is looking to support, Euro Manganese is one of only three companies specifically named by the MSP.
So the fact that they are paying close attention to EMN’s project is a win.
The market liked it too, EMN’s share price was up as much as 16% earlier today.
Here’s two key bits of news we’ve noticed in the high purity manganese space too:
- EMN’s offtake partner, French battery manufacturer Verkor secured €2BN in funding just last month
Significance for EMN: EMN has a term sheet for a long-term offtake with Verkor - we think the more funds Verkor has available the more impetus there is for a fully fleshed out, binding offtake which could in turn accelerate financing discussions. Particularly after the MSP’s backing today.
Significance for EMN: If EMN can produce an on-spec high purity sulphate product for potential customers, we expect this product to attract a price premium due to both its criticality and EMN’s ESG bona fides. This should feed into economics upside for its projects.
What’s next for EMN?
We await potential catalysts on four main fronts:
- Financing developments for Czech manganese project 🔄
- Offtake(s) for Czech manganese project 🔄
- Feasibility study for Quebec, Canada battery hub project 🔄
- Production of on-spec high purity manganese sulphate product 🔄
We are confident that EMN’s management is working diligently in the background during this “quiet execution” period - as EMN Investors, we’re comfortable being patient here as competitive tension builds around their projects and products.
