Manganese stocks are largely overlooked by investors on the street. That might be because right now it only plays a small role in the lithium-ion battery supply chain.
So you might be wondering, what even is manganese?
Manganese is a mineral that is found in the human body. It is often located in the bones, liver, kidney and pancreas.
However, it is not just an essential element of the human body, it is also an important component of the lithium-ion battery. This will help accelerate solar production, energy storage, and electric vehicles.
Lithium-manganese-based-layered oxides (LMLOs) have been on the rise recently, due to their high energy density and low cost.
Being an integral element in the cathode cell, it can capture up to 60% of its overall makeup.
As investors have focused on lithium stocks, nickel stocks, and uranium stocks in recent years, now might be a good time to explore manganese’s use case in EV production.
Below, we will present the 5 Best Manganese Stocks to consider in 2023!
Best Manganese Stocks for 2023
1. Vale S.A. (NYSE: VALE)
- Ticker: VALE
- Dividend Yield: 4.52%
- Market Cap: $73.04 Billion
Vale S.A. is a Brazilian multinational mining and metals company headquartered in Rio De Janeiro, Brazil.
They are the world’s largest producer of nickel and iron ore. Vale also produces cobalt, potash, copper and manganese and other key minerals.
According to Vale, Brazil holds 10% of the world’s manganese reserves. Their Brazilian manganese mines Azul in Pará, and Urucum in Mato Grosso do Sul, produce high-grade ore with at least 40% manganese.
Vale’s multi-decade track record and high yield place it in the upper echelon of best manganese stocks to own over the next decade.
2. Eramet EDR (OTC: ERMAY)
- Ticker: ERMAY
- Dividend Yield: 2.71%
- Market Cap: $3.02 Billion
Eramet EDR is a multinational mining and metals company headquartered in Paris, France.
They primarily operated as a nickel mining company, but have branched out into other ventures including lithium, mineral sands, manganese and high performance alloys.
Eramet manganese mine operations (Moanda) are in Gabon, a country located in Central Africa. As of 2022, Eramet is the number one producer in the world of refined manganese alloys.
Founded in the late 19th century, the company was largely funded by the Rothschild family. As one of the top producers of manganese alloys and high grade manganese ore, Eramet is one of the best manganese stocks to buy in 2023.
3. Manganese X Energy Corporation (TSXV: MN.V)
- Ticker: MN.V
- Dividend Yield: N/A
- Market Cap: $26.46 Million
Manganese X Energy Corporation is a Canadian junior mining company headquartered in Montreal, Quebec, Canada.
The company is still at a very early stage, and announced a fall drill program at its Battery Hill Manganese Project. In March 2023, they announced the drill program was almost completed and the company was advancing to pre-feasibility.
Its Battery Hill project located in Woodstock, New Brunswick is said to be 1,228 hectares, producing a total of 194,000,000 tonnes of manganese ore. Total coverage makes the project one of the largest manganese resources in North America.
Manganese X Energy Corporation is very speculative as it is still early in its exploration phases. However, if you’re risk averse this company could be a great long term bet on manganese.
4. Giyani Metals (TSXV: EMM.V)
- Ticker: EMM.V
- Dividend Yield: N/A
- Market Cap: $43.68
Giyani Metals is a Canadian junior mining company headquartered in Toronto, Canada.
Their mission is to develop high-purity, low carbon manganese oxide for the electric vehicle market.
The company is much further along than Manganese X Energy, announcing the results of the feasibility study for its K-Hill Battery Grade Manganese project in November 2022.
The results suggest higher grade manganese ore (18.9%), with expected production to begin in 2025.
Giyani Metals is well capitalized, however, with production near that could mean more dilution is coming. This company is certainly not for everyone due to the speculative nature of their mines non-existence track record.
If you’re bullish on manganese, you should always proceed with caution and only invest what you can afford to lose.
5. Euro Manganese (TSXV: EMN.V)
- Ticker: EMN.V
- Dividend Yield: N/A
- Market Cap: $86.57 Million
Euro Manganese is a Canadian junior mining company headquartered in Vancouver, Canada.
In July 2022, the company announced the results of its feasibility study for its Chvaletice Manganese project. Results included an NPV (Net Present Value) of $1.34 Billion.
The company’s Chvaletice mine located in the Czech Republic is one of the largest in the European Union. During the lifetime of the project, it is projected to produce up to 26,960,000 tonnes of manganese sulfate.
Euro Manganese looks to be a very promising manganese producer if their Chvaletice project pans out. However, the company is not expected to break ground until sometime in 2027.
When investing in junior mining companies, understand that it is speculative in nature and anything information presented should be taken with a grain of salt.
However, Euro Manganese’s strategic bet on manganese in the EU might be something you want to keep an eye on.
Best Manganese Stocks: Bet on The EV Revolution
Manganese stocks are not something you commonly hear investors talking about. When you think of key minerals for the electric vehicle battery, investors commonly think about lithium, nickel and steel.
Investing in manganese has its risks, as you can largely be tied to the prices of commodities and projects that may not pan out. However, there is a safer route betting on proven company’s like Vale.
If you’re risk averse, now can be a great time to place your bets on the best manganese stocks as the world transitions from combustion engines to electric vehicles.
Disclosure: The author holds no position mentioned in this article. Freedom Stocks has a disclosure policy.
