The price of zinc-manganese disposable dry batteries including alkaline battery and zinc carbon battery has risen sharply recently, because the price of electrolytic manganese dioxide, one of the main raw materials of dry batteries, has risen sharply. From October 2021 to February 2020, the price of electrolytic manganese dioxide increased by 80%. The cost of the battery has risen by about 15%. The specific analysis details are as follows:
The main production areas of EMD in the world include Europe, the United States, China and Japan. China is the largest electrolytic manganese dioxide (EMD) market, accounting for about 53% of the market share, followed by North America, accounting for about 16% of the market share . Core manufacturers include Tosoh, Prince, Borman Specialty Materials, Autlán, Xiangtan Electrochemical, etc. The top three manufacturers account for about 48% of the market share.
In 2020, the global electrolytic manganese dioxide (EMD) market size reached 5.1 billion yuan, and is expected to reach 8.2 billion yuan in 2026, with a compound annual growth rate (CAGR) of 6.8%. The spot price of electrolytic manganese dioxide has been rising since June 2021. In addition, due to recent environmental inspections and power restrictions, many manganese dioxide factories in China have reduced production this month, increasing the shortage of spot resources, and the supply side of the electrolytic manganese dioxide market has reduced production, giving the market some support. The price of electrolytic manganese dioxide continued to rise, and the price of some manufacturers has been raised to USD3150/ton.
The increase in the price of electrolytic manganese dioxide is due to the increase in demand on the demand side. This is mainly due to the large shipments of electric vehicle batteries and energy storage batteries in 2021, resulting in a large increase in the demand for manganese. The ternary lithium battery we often say is actually a combination of nickel, cobalt, manganese and lithium. Because cobalt and nickel are relatively scarce, the market has attracted a lot of attention, while manganese is a direction ignored by the market that deserves our good exploration. Except for lithium In the battery field, silicon manganese is also an important additive for steel. Adding a small amount of silicon manganese in steelmaking can greatly improve the hardness, toughness and other indicators of steel. Recently, the price of crude steel has risen sharply, and a new round of steel recruitment is expected to be concentrated. It will also rise.
The four electrolytic manganese dioxide companies listed on the Shanghai Stock Exchange in China are:
#1-Red Star Development (stock code: 600367)
The company’s manganese products include electrolytic manganese dioxide and high-purity manganese sulfate, among which high-purity manganese sulfate is mainly used for ternary cathode materials of lithium batteries. Manganese products mainly include EMD for primary batteries and lithium batteries, high-purity manganese sulfate, manganese tetroxide and other products. At the same time, the company is also involved in the production and sales of battery-grade lithium carbonate and by-products sulfur, thiourea, sodium sulfide, and barium slag green bricks, as well as the natural pigment industry. The subsidiary Guizhou Hongxing Development Dalong Manganese Industry Co., Ltd. has completed the optimization of high-purity manganese sulfate impurity removal technology, lithium carbonate process optimization, etc., providing technical reserves and problem solutions for improving the quality, capacity, and efficiency of lithium-manganese series products.
#2-Ordos (stock code: 600295)
The company is the largest monomer ferrosilicon manufacturer in the world, with the largest output of silicon manganese and ferrosilicon
The company’s electric power, metallurgy and chemical sector business is based on the rich local coal, silica, and limestone resources, with deep processing and transformation of resources as the main line to enhance value, in accordance with the circular economy industrial chain model, based on the development of mineral resources such as coal, and the power industry as the energy center. In the production of ferrosilicon alloys and chlor-alkali chemical products, the comprehensive utilization of “three wastes” (exhaust gas, waste residue, waste water) has formed the most complete “coal and other mineral resources – electricity – ferrosilicon alloy”, “coal and other mineral resources – electricity – chlor-alkali chemical industry” The production line has now formed the world’s largest production and sales scale of ferrosilicon, the fourth largest chlor-alkali chemical industry in China, and the largest industrial scale in Inner Mongolia. The model has created a heavy chemical industry cluster with complete supporting facilities, reasonable structure and rich chain led by resource conversion and upgrading, and formed a circular industry business pattern in which the whole industry chain participates in the market competition of terminal products and integrates upstream and downstream operations.
#3-Xiangtan Electrochemical (stock code: 002125)
Domestic electrolytic manganese dioxide leading companies have high-purity manganese sulfate for ternary cathode materials of lithium batteries
The company adjusts the product structure according to the needs of customers, and tracks and monitors it, strictly controls the quality of raw materials and products, and improves the construction of the quality system. Strengthen the management and control of various expenses, strengthen the optimal allocation of personnel; increase research and development efforts, and continuously carry out technology and product innovation. Quickly adjust marketing strategies according to market changes, further strengthen strategic cooperation with major customers, and steadily increase the proportion of major customers; the demand for lithium manganate-type electrolytic manganese dioxide products is increasing, and the supply is in short supply. The company seizes the opportunity and actively To develop new customers and expand market share, at the same time, Jingxi Electrochemical, a wholly-owned subsidiary, is expanding the production line of high-performance lithium manganate electrolytic manganese dioxide with an annual output of 10,000 tons to optimize the company’s product structure.
#4-Sinosteel Tianyuan (stock code: 002057)
The world’s largest supplier of manganese tetroxide, the joint-stock company Guizhou Jinrui is mainly engaged in high-purity manganese tetroxide, high-purity manganese sulfate, etc.
The company’s scientific and technological innovation work closely focuses on the high-quality development of the industry and the country’s major technical needs, focusing on the core role of “technical support” and “forward-looking leadership”, focusing on research and development projects, focusing on the transformation of scientific and technological achievements, and constantly improving the innovation system and mechanism Construction, research and development of software and hardware construction, unremitting exploration of service industry breakthroughs and “research-reserve-transformation-re-development” sustainable virtuous cycle innovation model.
The company’s battery-grade manganese tetroxide is mainly used to manufacture lithium manganate, a positive electrode material for lithium batteries, and electronic-grade manganese tetroxide is widely used in automobiles, photovoltaics, electronics, home appliances, 5G communications, electricity, charging piles and other industries, and can also be used in Functional materials such as optical glass and thermistors, and battery-grade manganese tetroxide enter the customer supply chain and are certified by international first-line battery customers.
As the demand for manganese in lithium-ion batteries has greatly increased, the demand will remain high and will gradually increase. Therefore, the price of electrolytic manganese dioxide is difficult to come down in the short term. Therefore, the price of zinc-manganese disposable dry batteries will not decline in the short term, and will continue to rise.