Giyani's Demo Plant Produces First Battery-Grade Manganese, Bolstering its Position in the EV Market

Giyani Metals Corp. (TSXV: GYI) (OTCQB: GYMCF) has achieved a significant milestone in its quest to become a leading supplier of battery-grade manganese. The company's Demo Plant in South Africa has successfully produced High Purity Manganese Oxide (HPMO), marking a crucial step in Giyani's journey towards commercial-scale production. This development not only validates the company's hydrometallurgical processing route but also enhances its competitive position in the rapidly growing electric vehicle (EV) market.

The Demo Plant, which is expected to produce up to 600kg/day of HPMO by the second half of 2023, has demonstrated the feasibility of Giyani's low-carbon emissions processing route. This route, which is fully hydrometallurgical and does not require energy-intensive calcining or electrowinning, has been developed by the Giyani team and is expected to be de-risked through the Demo Plant's operations. The successful production of HPMO at the Demo Plant has significant implications for the timeline and feasibility of the Commercial Plant's construction and operation.



The production of HPMO at the Demo Plant allows Giyani to engage with potential offtake partners and provide them with samples for qualification trials. This is an integral component of Project Financing and will help to secure offtake agreements, which are crucial for the feasibility and financing of the Commercial Plant. Additionally, the ability to produce both HPMO and High Purity Manganese Sulphate Monohydrate (HPMSM) gives Giyani technological and product optionality, enabling it to maintain pace with the rapidly developing battery market and be able to serve the majority of potential future battery types.



The growing demand for electric vehicles (EVs) and energy storage systems (ESS) is driving the need for battery-grade manganese. By 2035, total demand for HPMSM is expected to surpass 1.6 Mt per year on a contained metal basis. Giyani's ability to produce both HPMO and HPMSM positions it well to capitalize on this growing demand and maintain a strong market position.

Giyani's decision to produce both HPMO and HPMSM offers several potential benefits and drawbacks, which could significantly impact its long-term strategy. The production of two different products may require additional capital investment in infrastructure, equipment, and facilities, as well as increased operational costs due to the need to maintain separate production lines and manage different processing requirements. However, the technological and product optionality provided by producing both HPMO and HPMSM reduces Giyani's reliance on a single product, mitigating the risk of market fluctuations or shifts in demand. This diversification strategy can help ensure a steady revenue stream and maintain the company's competitive position in the market.

In conclusion, Giyani's production of High Purity Manganese Oxide (HPMO) at its Demo Plant is a significant milestone that validates the company's processing route, enhances its competitive position in the EV market, and influences the timeline and feasibility of the Commercial Plant's construction and operation. As the demand for battery-grade manganese continues to grow, Giyani is well-positioned to capitalize on this trend and maintain a strong market position in the rapidly evolving battery market.