Best Manganese Stocks

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Contributor, Benzinga
July 6, 2023

People, corporations and governments are increasingly beginning to care about renewable energy. As electric vehicle (EV) sales grow and more people start to look for renewable energy storage, the demand for metals associated with renewable energy will intensify. 

One of these metals is magnesium. If you’re looking to benefit from its almost certain rise, check out some of the best manganese stocks.

6 Best Manganese Stocks

Investing in manganese is a smart move, but where do you start? These are some of the best manganese stocks for investors right now.

1. BHP Group Ltd. (NYSE: BHP)

BHP Group is one of the world’s largest mining companies. It mines a range of metals, including manganese, aluminum, silver, gold, iron ore, zinc and nickel.

Like many other companies that mine manganese, BHP is poised to rise in price alongside growing demand. The company’s choice to mine so many metals is a good thing as well — even if the price of manganese were to drop unexpectedly, it likely wouldn’t have a major effect on share prices.

2. TMC the Metals Company Inc. (NASDAQ: TMC)

TMC is an interesting mining company because it searches for manganese, cobalt, copper and nickel on the ocean floor. Its metals are used in multiple forms of green energy, including batteries and wiring for electric cars and clean energy transmission.

TMC has seen steady growth recently as a result of the demand for manganese and other metals essential for the production of clean energy and EVs. If you buy now, you could see growth in the near future.

3. Vale (NYSE: VALE)

Vale is a Brazilian company that is one of the world’s top producers of manganese. It also produces a number of other metals. Vale stands out since it’s vertically integrated with energy, logistics and steel making.

If that wasn’t enough to appeal to potential investors, the company has also begun to invest in green energy and sustainability initiatives, including using low-carbon fuels for shipping. Given that it produces metals used in the technology sector and is making strides in green energy, VALE may have promise.

4. Ferroglobe PLC (NASDAQ: GSM)

Ferroglobe operates internationally, producing an impressive range of specialty metals and silicon. It’s a massive company with diverse holdings, including quartz mines, coal mines, other mineral properties and interest in a hydroelectric power plant. Investing in it could spread your risk in the way an exchange-traded fund (ETF) seeks to do.

Some metal prices are expected to go up throughout 2023. GSM has also seen steady growth over the past few years, so this stock could be a smart investment.

5. Tronox Holdings PLC (NYSE: TROX)

The forecast is looking bright for TROX, a company best known for its production of TiO2 pigment, titanium tetrachloride and pig iron. It’s easy to overlook that TROX also sells electrolytic manganese dioxide, a material used in making batteries. Like most stocks associated with EVs and other forms of clean energy, this one could be a gainer in the coming months.

6. Ultralife Corp. (NASDAQ: ULBI)

Manganese demand is going up, as is the demand for lithium. Ultralife is a major producer of both. The company has two segments: one focused on communications systems and the other on battery and energy products. 

It creates rechargeable and non-rechargeable lithium-ion batteries and lithium manganese dioxide batteries. It also makes a range of charging systems. The demand for all these products shows no signs of slowing down. So while ULBI isn't exclusively related to manganese, it could be a good manganese stock to invest in.

What Are Manganese Stocks?

Manganese stocks are the stocks of companies involved with the mining, refining or manufacturing of manganese. However, if you’ve already done some digging, you may have had trouble finding good ways to get exposure to this valuable metal.

That’s because virtually no companies work exclusively with manganese. Some mine it along with an array of other minerals. Many of the companies with the best manganese stocks mine or work with lithium, cobalt and other minerals essential to green energy.

When you invest in manganese stocks, you’re also investing in companies that produce other metals. This strategy can be a great feature for spreading risk. But it can be difficult to find an investment that will give you extensive exposure to magnesium.

Why Invest in Manganese Stocks?

The price of manganese stocks is determined by supply and demand, but the manganese market includes demand from different sectors.

The Steel Industry

Manganese has been somewhat in demand as it is used as an additive that increases steel’s toughness, stiffness and strength. The steel industry continues to consume a good bit of the manganese that is produced today. 

However, that consumption has remained relatively constant over the years. As a result, it isn’t the primary reason you should invest in magnesium now.

The Chemical and Agricultural Industry

Although it doesn’t consume nearly as much manganese as the steel industry, the chemical industry is also responsible for some manganese demand. This mineral is important for nutrition in many animals, especially cattle. It also can be found in some types of fertilizer.

The Battery Industry

Manganese is a key part of batteries. In alkaline batteries, it has long been used as a depolarizer. It’s also an important component in rechargeable lithium-ion batteries. Two main types of rechargeable batteries (lithium-manganese oxide batteries and lithium-nickel-manganese-cobalt oxide batteries) rely on manganese to function.

Thanks to a sustained, growing focus on renewable energy, the battery industry is booming. Some experts believe that manganese-containing battery technology will become even more prevalent, further driving up demand and stock prices. If this is the beginning of magnesium’s rise and you’re planning to invest, now could be a great time to do so.

Where to Invest in the Best Manganese Stocks

Choosing the right manganese stocks to invest in is important, but so is choosing the right broker. Below is a selection of Benzinga-vetted online brokers to consider.

Find a New Way to Diversify With Manganese

Keeping track of new and emerging trends is a great way to plan which stocks you should invest in next. And if you have an interest in renewable green energy, you might already know about the importance of manganese. 

As demand has increased, its prices have begun to rise. The price of manganese is also unlikely to be affected by the prices of other commodities, so this metal may be a stabilizing investment for your portfolio. 

If you’re unsure how to improve your portfolio, or if you’re building one for the first time, Benzinga can help. Here, you’ll find articles, reviews, forums, news and other resources to help you create a diverse, resilient investment portfolio.

Best Manganese Stocks Methodology

Many mining companies dedicate at least part of their operations to manganese. Here’s how these stocks were selected:

  • Existing company holdings
  • Predicted growth
  • Current and past performance
  • Current dividend yields
  • Diversity of products/metals produced

Your own investment goals will help you to determine whether these are the best stocks for you. Do your own research before you buy.

Frequently Asked Questions

Q

Can you invest in manganese?

A

Yes, you can invest in manganese. One of the best ways to do so is by investing in mining companies that dedicate substantial resources to mining and refining magnesium.

Q

Who is the largest miner of manganese?

A

South32, a mining company based in Australia that is traded on the Australian Securities Exchange, is the world’s biggest miner of manganese.

Q

Is manganese in high demand?

A

Currently, manganese demand is high, and it doesn’t look like it’s slowing down anytime soon. That’s largely because manganese is an important metal for making EV batteries and other forms of renewable energy.