Europe’s critical-minerals landscape is increasingly shaped by projects that prioritize processing and recycling rather than conventional greenfield mining, with the Chvaletice Manganese Project in the Czech Republic emerging as a key example. Developed by Euro Manganese, the project is designed to recover manganese from historic tailings left by a mine that operated between 1951 and 1975, transforming legacy waste into battery-grade materials for energy storage, defence, and industrial applications.
Located approximately 90 kilometres east of Prague in the Pardubice Region, the project benefits from established industrial infrastructure, including rail, road, gas, water, and proximity to a power plant. Euro Manganese describes Chvaletice as the only sizeable classified manganese resource in Europe.
Battery Materials Shift Drives Manganese Demand Outlook
Manganese is gaining importance in battery supply chains alongside lithium, nickel, cobalt, and graphite. It is used in chemistries such as lithium manganese iron phosphate and manganese-rich cathodes, supporting lower-cost and lower-cobalt or cobalt-free battery designs.
The project is engineered to produce high-purity electrolytic manganese metal (HPEMM) and high-purity manganese sulphate monohydrate (HPMSM). The current development concept targets 50,000 tonnes per year of HPEMM, convertible into 150,000 tonnes per year of HPMSM, positioning the output for battery and specialty-materials markets rather than conventional ferroalloys.
Resource Base and Tailings Reprocessing Model
Chvaletice is based on anthropogenic tailings from the historic mine site, with measured and indicated resources of 26.96 million tonnes, grading 7.33% total manganese and 5.86% soluble manganese. The processing approach includes excavation, beneficiation, leaching, purification, electrowinning, crystallisation, and modern residue storage. The model is designed to combine material recovery with environmental remediation of the legacy site. Updated metallurgical recoveries are estimated at 60% for HPMSM and 61% for HPEMM, following additional test work and demonstration-scale optimization.
Phase Development Plan and Project Economics
A May 2026 preliminary economic assessment (PEA) outlines a phased development approach, beginning at 50% capacity (Phase I) followed by full expansion (Phase II).
Capital requirements include:
- $627.5 million initial Phase I capital
- $197.8 million Phase II expansion capital
Economic metrics include:
- Pre-tax NPV: $740 million
- Post-tax NPV: $492 million
- Pre-tax IRR: 16.0%
- Post-tax IRR: 13.8%
- Discount rate: 8%
- Project life: 26 years
- Target production start: 2032
The production structure reflects a staged ramp-up aligned with market conditions and financing availability.
Processing Circuit and Product Specifications
The flowsheet is designed as a hydrometallurgical system incorporating magnetic separation, sulphuric acid leaching, purification, electrowinning, and crystallisation.
Key elements include:
- Production of selenium-free HPEMM flakes
- Conversion into HPMSM powder
- Recovery of manganese from anode slimes
- Removal of sodium and potassium impurities
- By-product output of up to 20,000 tonnes per year of magnesium carbonate
The complexity of the process reflects the requirement to meet battery-grade purity standards. Financing Structure and Development Timeline The project’s capital intensity has led to a staged financing strategy. The design anticipates equity, public funding, development-bank participation, customer-linked financing, and potential EU and Czech support mechanisms.
A project finance framework includes:
- Positive environmental and social impact assessment
- Mining lease determination
- Strategic designation under EU and Czech frameworks
- Assessment by the European Investment Bank as a first-of-a-kind commercial-scale battery-grade manganese recycling facility
Full financing has not yet been secured at scale, and grid and permitting processes remain ongoing.
Construction Scope, Jobs, and Infrastructure Requirements
The development plan includes excavation of all three tailings cells and installation of modern residue handling systems, including dry-stacked filtered storage and water management infrastructure.Employment projections include:
- 800–1,000 construction jobs
- Approximately 400 permanent operational jobs
Infrastructure requirements include grid electricity connections, water management systems, rail logistics, and processing plant integration.
Project Economics and Market Conditions
The PEA assumes an average HPMSM price of $2,888 per tonne and estimates an operating margin of 48%.The project faces sensitivity to reagent costs, energy prices, impurity control, and ramp-up timing risks associated with hydrometallurgical operations.
Strategic Role in EU Critical-Materials Policy
Chvaletice has been designated a Strategic Project under the EU Critical Raw Materials Act and is also recognized under Czech national strategic frameworks.The project is positioned as part of Europe’s effort to expand domestic capacity in battery-material processing and reduce dependence on external supply chains for manganese products used in energy storage systems.Despite policy support, permitting alignment under national legislation and grid access arrangements remain key execution challenges.
Product Qualification and Commercial Development
Euro Manganese is advancing product testing and qualification with potential customers for high-purity manganese products. The company continues to pursue offtake agreements and commercial supply arrangements, as battery materials require strict specifications, traceability, and long-term reliability commitments.The market environment reflects ongoing uncertainty in electric vehicle demand trajectories and evolving battery chemistry adoption across automakers and cell producers.
The project’s design integrates environmental remediation with industrial production. The redevelopment plan includes excavation of tailings, site lining, surface water diversion, contact water collection, and progressive land reclamation.The objective is to transform the legacy tailings site into a remediated landscape while producing battery-grade manganese products through a circular processing model.
Broader Industrial Context
Chvaletice is located within an established industrial corridor supported by transport, energy, and manufacturing infrastructure. The project’s geographic position aligns it with European automotive supply chains and potential North American customers seeking non-Chinese manganese supply.The development represents a combination of waste reprocessing, critical-minerals production, and environmental remediation within a single industrial framework, reflecting broader EU priorities for circular economy-based raw-material strategies.
