Euro Manganese Inc. reports significant progress on its Chvaletice Project and Bécancour Plant, positioning itself as a key Western supplier of high-purity manganese critical for EV batteries. The company highlights strong feasibility results, strategic financing partnerships, and multiple offtake agreements amid an expected global supply deficit.
- Chvaletice Project feasibility study shows $1.3B NPV and 22% IRR
- Demonstration plant exceeds production targets with on-spec manganese products
- Five offtake term sheets signed, targeting 80% of annual production
- Strategic Project status under EU and Czech legislation enables funding and expedited permitting
- Bécancour Plant scoping study reveals strong economics, pending financing
Strategic Positioning in a Critical Battery Material
Euro Manganese Inc. has unveiled a comprehensive update on its flagship Chvaletice Manganese Project in the Czech Republic and its North American Bécancour dissolution plant in Quebec. The company is carving out a pivotal role as a Western supplier of high-purity manganese products, specifically High Purity Electrolytic Manganese Metal (HPEMM) and High Purity Manganese Sulphate Monohydrate (HPMSM), which are essential components in lithium-ion batteries powering electric vehicles (EVs).
With global supply forecasts indicating a looming deficit of HPMSM starting post-2027 and growing to a shortfall of 6.2 million tonnes by 2035, Euro Manganese’s projects are well-timed to address this critical gap. The company’s approach leverages circular economy principles by recycling historic tailings, offering a low-carbon, environmentally positive alternative to traditional manganese mining.
Robust Economics and Operational Milestones
The Chvaletice Project’s feasibility study, completed in 2022, underpins the company’s confidence with a post-tax net present value (NPV) of $1.3 billion and an internal rate of return (IRR) of 22%. The project promises a 25-year life producing 16,000 tonnes per annum of HPEMM and 100,000 tonnes per annum of HPMSM, with an attractive EBITDA margin of 59%. The demonstration plant has already produced on-spec manganese products, exceeding production targets by 30%, validating the process flowsheet and supporting ongoing customer qualification efforts.
Permitting progress is advanced, with key approvals such as the Environmental and Social Impact Assessment and Mining Lease Permit secured. The project benefits from Strategic Project status under the EU Critical Raw Materials Act and Czech legislation, facilitating access to grants, expedited permitting, and tax incentives. Partnerships with the European Bank for Reconstruction and Development (EBRD), now the largest shareholder with a 17.5% stake, and ongoing discussions with the European Investment Bank (EIB) provide a strong financial foundation.
Offtake and Financing Strategy
Euro Manganese has signed five offtake term sheets and one contractual offtake right, covering over 100% of the annual HPEMM volume and more than 25% of HPMSM volume expected from 2034. The company is focused on securing additional commitments from North American and European original equipment manufacturers (OEMs), reflecting the strategic importance of localized supply chains amid geopolitical tensions and supply risks associated with Chinese dominance in manganese production.
Financing efforts include a structured package with up to US$100 million in debt and equity components, including a US$20 million loan received and a conditional US$30 million tranche convertible into a royalty. The company is also exploring ESG-focused funds and commercial bank financing, leveraging the project’s strong environmental, social, and governance credentials.
North American Growth Opportunity
The Bécancour Plant in Quebec represents Euro Manganese’s first-mover advantage in North America for producing HPMSM. A positive scoping study completed in 2023 highlights modest capital expenditure of C$110 million, a post-tax NPV of C$190 million, and an IRR of 26%, with a payback period of approximately four years. The plant is designed to process 16,000 tonnes per annum of HPEMM into 48,500 tonnes of HPMSM, leveraging existing process development from the Chvaletice Project. While the feasibility study and permitting are currently on hold pending financing, the project benefits from strong local infrastructure, government support, and access to competitively priced green energy.
Sustainability and Community Engagement
Euro Manganese emphasizes its commitment to sustainability, with the Chvaletice Project demonstrating net positive environmental benefits through remediation of historic tailings and use of 100% renewable electricity. The project avoids freshwater use by sourcing industrial wastewater and incorporates by-product recycling within its process. Socially, the company engages closely with local communities, creating approximately 400 jobs during operation and contributing significant corporate taxes and royalties, with a portion flowing back to local municipalities.
Bottom Line?
As Euro Manganese advances financing and offtake milestones, its projects could become linchpins in securing Western manganese supply for the EV revolution.
Questions in the middle?
- Will Euro Manganese secure the remaining financing tranches to proceed to final investment decision?
- How quickly can the Bécancour Plant feasibility study resume and progress amid current funding constraints?
- What impact will evolving EV battery chemistries have on demand for Euro Manganese’s products over the next decade?