EV Battery Strategy
As part of its five-year Company Strategy, Jupiter Mines is exploring the potential to supply High Purity Manganese Sulphate Monohydrate (HPMSM) to the Electric Vehicle (EV) Battery Market. In March 2023, Jupiter Mines announced its intention to develop an EV Battery Market Entry Scoping Study, which was subsequently completed in March 2024. Jupiter is currently undertaking a Pre-Feasibility Study, with a Final Investment Decision (FID) expected by the end of 2025.
Battery Metals Market
The demand for battery-grade manganese (HPMSM) is projected to surpass supply growth in the latter half of this decade, creating a market deficit. Jupiter Mines' potential entry into the EV battery market is timely and aims to meet the increasing global demand for sustainable transportation solutions. By providing battery-grade manganese, Jupiter Mines will contribute to the decarbonisation of the transport sector and support the global shift towards renewable energy and lower carbon emissions.
Competitive Advantages
1. Strong Financial Position: Jupiter Mines benefits from robust cash flows and zero debt, ensuring a stable financial foundation for its strategic projects.
2. Quality Resource Base: The Tshipi mine, a tier-one asset, is renowned for its low-cost production and high-grade manganese ore.
3. Supportive Shareholders: Major shareholders such as POSCO and AMCI active in the downstream battery mineral sector, bolster Jupiter's market positioning and strategic execution.
Jupiter’s Ore Feedstock Advantage
Jupiter Mines has access to ample, suitable by-product ore feedstock, offering an estimated operating cost advantage of around 19%. As a significant existing manganese producer with established strategic relationships, Jupiter presents itself as a low-risk potential supplier with a competitive edge in market entry.
Scoping Study Outcomes
The completed Scoping Study outlined the business model, confirmed laboratory proof of concept for Jupiter’s technical process, identified preferred processing sites, initiated discussions with potential offtake customers, and developed engineering cost estimates. Despite conservative assumptions, the Scoping Study returns appear attractive.
Next Steps
The next phase involves completing the Pre-Feasibility Study (PFS), which will refine technical processes, select a location, and firm up cost assumptions, business models, offtake agreements, and funding assumptions. The PFS is funded as a normal overhead expense by Jupiter. FID is anticipated by the end of 2025, with production slated to begin in 2028, aligning with the anticipated need for incremental HPMSM supply.
Commitment to Sustainability
Aligned with its broader sustainability goals, Jupiter Mines views its EV Battery Strategy as a crucial component of its contribution to the global energy transition. Detailed in the company’s inaugural Sustainability Report, this initiative underscores the potential for HPMSM to support the electrification of transport and broader sustainability efforts.
Prospects
Looking ahead, Jupiter Mines is committed to market diversification and risk reduction by optimising its mineral resources. By focusing on HPMSM production, Jupiter aims to meet the rising demand for EV batteries, ensuring its continued significance in the global supply chain for sustainable energy solutions.
