Giyani Encouraged by Tesla’s Battery Day as Positive for High Purity Manganese

OAKVILLE, Ontario, Sept. 24, 2020 (GLOBE NEWSWIRE) -- Giyani Metals Corp. (TSXV:EMM, GR:A2DUU8) ("Giyani" or the "Company") is encouraged by the endorsement of high purity manganese as a critical component of cathode chemistries discussed during the Tesla Battery Day, held on September 22, 2020.

The following points we believe are positive for the high purity manganese market.

• Tesla Inc. (“Tesla”) announced that the cathode chemistry for their intermediate range vehicles and non-industrial stationary storage units will contain one-third (33%) manganese. This was the first time Tesla referred to the manganese content in its battery chemistries. This is over 3 times the manganese contained in a NCM 811 cell, which Benchmark Mineral Intelligence anticipates will be one of the market leading cathode chemistries by 2030.
  
• Expectations for Tesla’s future market share remain high. Elon Musk, co-founder and CEO of Tesla stated that “longer term we want to replace at least 1% of the total vehicle fleet on earth… which is about 20 million vehicles a year.”
• In addition to producing its own batteries, Tesla will continue to source batteries from the Tier 1 battery manufacturers LG Chem, Panasonic and CATL, all of whom produce cells with manganese containing cathodes.
• Tesla expects that cutting the cost of battery production, measured in US$/kWh, by 56% from current production costs, could create the opportunity to produce a US$25,000 Electric Vehicle (EV). A contributing factor of this cost saving is the replacement of cobalt from the cathode with other battery elements including nickel and manganese, which are more economical and sustainably sourced.

Robin Birchall, CEO of Giyani Metals Corp. commented:

"My three takeaways from the Tesla Battery Day are no different to what we’ve learnt from the discussions we have had with other potential end buyers to date: (1) sustainability of the raw materials is incredibly important, (2) manganese is a cathode material that will be used in the majority of the EV market for at least the next decade, and (3) vehicle manufacturers are moving further upstream to seek security of supply. The event therefore confirms our view that there is a growing opportunity for high purity manganese in the EV market, and that Giyani is well positioned to benefit from this.