Surging Electric Vehicle Demand and IRA Drive Development of US Manganese Mines

Australian Metal Company Announces Arizona Mine Development Plan

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunji Kwon] It appears that a manganese mine, a key material for electric vehicle batteries, will be developed for the first time in the United States. This is expected as competition among automakers to secure manganese intensifies due to the increasing demand for electric vehicles and the implementation of the Inflation Reduction Act (IRA).

On the 4th, Graham Kerr, CEO of Australian mining and metals company South32, stated in an interview with Bloomberg News that they plan to accelerate the development of the Hermosa mine in Arizona, the first manganese mine to be developed in the U.S.

He said that automakers are "very eager" to secure manganese produced from the Arizona mine, which will be the only manganese mine in the U.S., adding, "The biggest challenge is whether we can quickly extract a sufficient amount." The manganese ore reserves at the Arizona mine amount to 55 million tons, with a manganese content of 9%.

South32 has allocated $290 million (KRW 414.555 billion) for mining facility investment costs in this fiscal year and plans to complete the development review within this year.

According to BloombergNEF, manganese demand in the battery industry is expected to increase ninefold by 2030, the fastest growth among major metals. Coupled with the implementation of the Inflation Reduction Act, which provides tax credit benefits when batteries and key minerals produced in the U.S. are used above a certain ratio, demand from U.S. automakers is expected to be particularly high.