Article by Investment U
At first, its name sounds more like a foreign language than a metal.
But you may be surprised to know that manganese – a grayish-white element essential to the production of steel – is actually the fourth most traded metal in the world.
Last year, 15.4 million tons of it was produced to help make better cars, infrastructure and even unleaded fuel.
And although prices have traded relatively flat in recent months, I’m writing you today because manganese is set up to become one of the most sought after minerals in the world. Here’s why…
(Click here to check out a detailed infographic about manganese from Visual Capitalist.)
Revolutionizing the Future of Transportation
In short, engineers at the University of Illinois recently created a prototype battery using lithium and manganese that can be recharged by 90% in just two minutes flat. That’s right, two minutes flat.
They’re called “lithiated manganese dioxide,” or LMD, batteries.
Now I don’t know what kind of car you drive, but two minutes is about how long it takes for my Chevy to refuel at the pump.
But the best part about these new LMD batteries in development is that, not only do they have higher power output and provide enhanced safety in comparison to other lithium ion batteries, they’re much cheaper to make, as well.
Because manganese is very abundant around the world. It’s actually the twelfth most common element found in the earth’s crust.
Today, 90% of global manganese output is used in the production of steel. But with new technologies, such as LMD batteries, new markets are opening up for manganese. And it could be a game-changer for the electric vehicle market – and switched-on investors – over the next few years.
Show Me the Money
So where could one look for opportunities to invest in manganese?
There aren’t many ways to go about it. Despite being such a major player in the world of metals, there aren’t any convenient ETFs tracking the price of manganese. And there really aren’t any legitimate miners that completely focus on the metal.
Until more investors catch on to the investment potential of manganese, you only have two real options.
First, look small and look abroad. For example, after 50 years of shutting down production, the South American nation of Guyana is on the brink of restarting its manganese mining industry.
According to Resource Investing News, in 2010, the government granted Reunion Gold Corp. (TSXV: RGD) four prospecting licenses to explore for and develop manganese at the nation’s old mine location at Matthews Ridge in northern Guyana.
This move alone could make Guyana one of the top five manganese producers in the world within the decade. If all goes according to plan, building the mine will begin in August 2013, with full production starting up in 2014.
Other countries with big opportunities in manganese include Gabon, China, South Africa and Ukraine.
A second way to play manganese is by simply sticking with the major players. It may not sound like a lot of fun, but it’s a safe bet. Among the top three manganese producers currently worldwide are BHP Billiton (NYSE: BHP), Anglo American (LSE: AAL, OTC: AAUKY) and Vale S.A. (NYSE: VALE).
Either way you approach it, manganese presents a great opportunity to invest today. And as I’ve shown, soon it won’t be used just for steel anymore.
In fact, carmakers like Chevrolet Nissan, and Hyundai are already putting LMD batteries in the Volt, Leaf and Sonata. Now if they could just hurry up on that two-minute battery recharge…
Good Investing,
Mike
Article by Investment U
