Market Outlook and Operational Insights slide image

Market Outlook and Operational Insights

BATTERY-GRADE MANGANESE MARKET Committed government policies are expected to underpin a near six-fold increase in North American NEV penetration levels by 2030 We expect manganese-rich battery chemistries to capture ~30% of the market by 2030, and >50% by 2040 NEV (passenger car and commercial vehicle) penetration rates (a)(b)(c)(d) Manganese-rich cathodes provide substantial cost, performance and sustainable sourcing benefits Electric vehicle battery chemistries Active cathode materials, % by mass 50% NEV penetration in North America by 2030 100% 2021 2022 2023 2024 2025 2030 2040 2050 North America NEV Penetration Rate ROW NEV Penetration Rate LFP NCM-622 LMFP NMx III SOUTH32 Co 18% Fe 60% Mn 65% Mn 17% Mn 69% Ni 54% Fe 18% P 33% Ni 25% P 10% Li 11% Li 7% Li 7% Li 6% Battery chemistry for a standard NCM-622 battery contains ~17% Mn by mass while contributing <1% to cost (e) The future adoption of manganese-rich chemistries is increasingly supported by cathode producers and OEM public announcements of their next generation battery chemistry strategies Sources: NEV (passenger car and commercial vehicle) penetration rates (South32 analysis). Electric vehicle battery chemistries (Bloomberg NEF, Esource and other publicly available information). Notes: a. NEV includes plug-in hybrids, battery EVs and hydrogen fuel-cell passenger cars. b. NEV penetration is calculated as NEV production divided by total automobile production. C. Passenger car and commercial vehicles include commercial trucks/SUVS. d. North America refers to US, Canada and Mexico. e. Based on prices as at the end of 2022. SLIDE 41
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