Botswana has granted Giyani Metals a 15-year mining licence, the company announced on Wednesday, marking a significant step toward becoming the country’s first producer of battery-grade manganese.

Manganese is a critical material in battery production, and its demand is expected to rise due to the growth of electric vehicles and other clean energy technologies.

Giyani's Kgwakwe Hill project will process manganese oxide on-site to produce high-purity manganese sulphate, positioning it as one of the few battery-grade manganese projects outside of China, which currently controls 90% of the global supply.

The K.Hill mine is expected to produce 80,000 metric tons of high-purity manganese sulphate monohydrate annually over its 57-year lifespan, according to a 2023 preliminary economic assessment, Reuters reports.

“The next step is production of battery-grade manganese from our demonstration plant, which is under construction in Johannesburg, South Africa,” according to a statement by the Canadian company.

The product from the demonstration plant will be used for offtaker qualification, a crucial step before finalising offtake agreements, the company noted.  

Botswana, the world's largest diamond producer by value, heavily depends on diamonds, which account for 30% of national revenue and 70% of foreign exchange earnings.

Botswana is aiming to diversify its mining sector by exploring minerals such as copper, nickel, coal, and iron ore.

In addition to its diamond mines, the country currently operates two coal mines and three copper mines.

As global demand for green minerals grows with the energy transition, the need for battery metals like manganese is expected to help reduce Botswana's reliance on diamonds.