Giyani Metals is stepping up efforts to secure strategic partners for its flagship K.Hill battery-grade manganese project in Botswana after publishing a DFS that outlines a US$535 million development requiring substantial funding but offering long-term exposure to the rapidly growing electric vehicle battery supply chain. The Toronto-listed company said the study confirms the economic viability of the project, which is expected to become a source of high-purity manganese sulphate monohydrate (HPMSM), a key ingredient used in lithium-ion battery cathodes.

The DFS outlines a project with a post-tax net present value (NPV) of US$481.5 million at an 8% discount rate, a post-tax internal rate of return (IRR) of 20.3%, and estimated life-of-mine free cash flow of approximately US$1.6 billion. Initial capital expenditure has been estimated at US$535 million, with total life-of-mine capital spending expected to reach US$679 million.

Search for partners intensifies

Following publication of the DFS, Giyani's leadership indicated that securing financing, strategic investors and potential offtake partners is now a central priority. "We will be progressing our discussions with strategic partners and evaluating opportunities within the battery-grade manganese sector that have the potential to enhance value for our shareholders," said interim executive chair Nigel Robinson.

The company is seeking partners at a time when Western governments and battery manufacturers are increasingly searching for alternative critical mineral supply chains outside China, which dominates global manganese processing. Robinson said the project addresses a growing strategic concern in the battery industry. "With China controlling 95% of manganese processing capacity, access to non-China supply of this critical material is constrained," he said. "The DFS marks a significant step towards a viable solution."

What is K.Hill?

Located in Botswana's Kanye Basin, approximately 60km to 80km from Gaborone, K.Hill is designed as an integrated mine-to-market operation producing both HPMSM and high-purity manganese oxide (HPMO) for the global battery materials market. The project is based on a newly declared mineral reserve and will operate as an open-pit mine feeding a processing facility capable of producing battery-grade manganese products. The operation is expected to run for approximately 25 years under the current mine plan.

Giyani has already advanced a demonstration plant in Johannesburg, where it has successfully produced both HPMSM and HPMO, helping to validate its proprietary processing flowsheet and support future customer qualification and offtake negotiations. The project represents a significant milestone not only for Giyani but also for Botswana, which granted the company a mining licence in 2024. The development is expected to establish Botswana's first battery-grade manganese operation and contribute to the country's efforts to diversify beyond its traditional dependence on diamonds.

Backing from strategic investors

Although the capital requirement remains substantial, Giyani has already attracted support from several influential investors and development finance institutions. The South African Industrial Development Corporation (IDC) previously provided US$16 million in debt financing, while ARCH Emerging Markets Partners, backed by African Rainbow Minerals founder Patrice Motsepe, invested US$10 million through a combination of equity and royalty financing. ARCH currently holds nearly 20% of the company.

When ARCH first invested, managing director Amanda van Dyke described Giyani as a rare opportunity within the battery materials sector. "ARCH is very happy to announce its strategic investment in Giyani Metals," she said, citing the growing role battery-grade manganese is expected to play in future lithium-ion battery technologies and the company's potential to contribute to a diversified global supply chain.

Giyani has also attracted attention from the United States. According to company disclosures, the Export-Import Bank of the United States has previously issued a letter of intent indicating potential financing support of up to US$225 million, highlighting the project's strategic importance within Western critical mineral supply chains.

Analysts see both opportunity and challenges

While the DFS confirms strong economics, analysts note that project costs have increased significantly since earlier studies. Compared with the company's 2023 preliminary economic assessment, initial capital costs have risen sharply, while projected production volumes and mine life have been revised. However, the DFS now benefits from proven and probable reserves and a more advanced engineering base, reducing development risk. Industry observers believe the project's success will ultimately depend on securing financing and long-term offtake agreements from battery manufacturers and automotive supply chains.

Analysts at The Northern Miner noted that despite the higher capital burden, the study reinforces K.Hill's positioning as a unique battery-grade manganese supplier serving growing Western demand. Mining industry commentators also point to the project's strategic value given the increasing push by North America and Europe to establish independent supply chains for critical battery materials amid geopolitical concerns surrounding China's dominance of processing capacity.

A critical minerals test case for Africa

For Botswana, K.Hill represents more than a new mine. The project is emerging as one of Africa's most advanced battery minerals developments and a test case for the continent's ambitions to move beyond raw mineral exports and participate more directly in downstream battery materials processing. If Giyani succeeds in securing the required financing and strategic partnerships, first production is currently targeted for 2029. By that time, company forecasts suggest global battery-grade manganese markets could be entering a structural supply deficit, potentially creating favourable conditions for new entrants outside China.

With critical mineral supply security now a strategic priority for governments, automakers and battery manufacturers alike, the race to finance K.Hill could become one of the more closely watched battery metals stories in Africa over the next 12 months.