With the rise of green steel and the EU's CBAM, the ferroalloy industry faces an existential challenge. Diversification into battery materials and low-carbon production is the way forward.

The global ferroalloy industry is at an inflection point. The transition to a low-carbon economy is fundamentally reshaping demand for manganese alloys.

Traditionally, ferroalloys are primarily consumed by the steel industry. However :

• Hydrogen-based steelmaking and electric arc furnaces (EAF) are replacing blast furnaces

• Scrap recycling reduces the need for new alloys

• China plans to raise EAF share from 11% to 20% by 2030

The sector is adapting on two main fronts :

1. Battery materials

• High-purity manganese sulfate (HPMSM) is essential for EV cathodes

• Manganese offers stability and competitive cost compared to cobalt and lithium

2. Low-carbon production

• New technologies reduce energy consumption by up to 70%

• Recent study shows low-carbon ferromanganese production at just 410–880 kWh/ton, versus 2.000 kWh/ton international benchmark 

The EU's Carbon Border Adjustment Mechanism (CBAM) will penalize high-emission imports . This forces producers to:

• Invest in renewable energy sources

• Adopt low-carbon technologies

• Certify products as "green"

For Brazilian and South American producers, the message is clear:

• Diversify into battery materials

• Invest in low-carbon production

• Prepare for environmental certifications

The future is not about survival – it's about transformation.

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