Department of Defense “Defense Industrial Base” Report Highlights Potential Vulnerabilities Including Raw Materials Supply

Mr. Daniel McGroarty, American Manganese Inc.’s Advisory Board Member commented today on the issuance of a new U.S. Government report – conducted in response to Presidential Executive Order 13806 (July 21, 2017) – on the condition of the U.S. Defense Industrial Base.  The Pentagon study  “Assessing and Strengthening the Manufacturing and Defense Industrial Base and Supply Chain Resiliency of the United States” raises concerns about single-points-of-failure in U.S. defense supply chains, including situations where timely access to a key critical material can interrupt or delay weapons program development, or result in an absence of replacement parts that affect force readiness.

According to the report, “foreign dependencies on essential raw minerals (e.g., lithium) may potentially impact the rechargeable and non-rechargeable battery supply chain.”

“This is a clear recognition on the U.S. Government’s part that adequate supply of critical materials is as essential for national security as it is for advanced manufacturing in the commercial economy,” said Larry Reaugh, CEO of American Manganese.  “The new Pentagon report makes clear the importance of lithium-ion battery materials, for which the U.S. is currently between 50 and 100% import-dependent.  That puts a premium on processes like ours to recover these critical minerals from spent batteries and industrial scrap.”

The Pentagon report directs the Secretary of Defense to expand “direct investment” in the lower tiers of the Defense Industrial Base to “mitigate single-points-of-failure,” and to “diversify away from complete dependency on sources of supply in politically unstable countries who may cut off U.S. access.”

Earlier this year, the U.S. Department of Interior released a list of Critical Minerals, working in cooperation with the U.S. Department of Defense.  AMY’s patented recovery process targets lithium, manganese and cobalt, all three of which are on the U.S. Critical Minerals List.  Of the nine minerals on the Critical Metal List, lithium, cobalt and manganese not only meet the industrial indicators used to compile the list but the defense criticality indicator as well.

AMY’s U.S. patent application for its recovery process was published on May 17, 2018.  The full press release on patent No. WO2018/089595 is available here: PROCESS OF COBALTOUS SULPHATE/DITH-IONATE LIQUORS DERIVED FROM COBALT RESOURCE.

About Dan McGroarty, Strategic Advisor
Daniel McGroarty has consulted for nearly two decades to firms in the resource sector, with a focus on strategic and critical metals. He is principal of the non-profit American Resource Policy Network, a resource development think tank. He has served as a critical materials subject-matter expert for the U.S. GAO; testified before the energy and natural resource committees of the U.S. House and Senate; consulted to the Institutes for Defense Analyses, which provides research and analytical work to the U.S. Department of Defense for its National Defense Stockpile reports; and currently serves as Adjunct Professor at The George Washington University Graduate School of Political Management. Prior to establishing his consultancy, Dan served as Special Assistant to the President in the White House and as presidential appointee to two Secretaries of Defense.

About American Manganese Inc.
American Manganese Inc. is a diversified specialty and critical metal company focused on capitalizing on its patented intellectual property through low cost production or recovery of electrolytic manganese products throughout the world, and recycling of spent electric vehicle lithium-ion rechargeable batteries.

Interest in the Company’s patented process has adjusted the focus of American Manganese Inc. toward the examination of applying its patented technology for other purposes and materials.  American Manganese Inc. aims to capitalize on its patented technology and proprietary know-how to become the industry leader in recycling spent electric vehicle lithium-ion batteries and recovering 100% of the cathode metals such as:  Lithium-Cobalt, Lithium-Cobalt-Nickel-Manganese, Lithium-Cobalt-Aluminum and Lithium-Manganese (Please see the Company’s July 25, 2018 Business Plan (“CBP”) for further details).

On behalf of Management

AMERICAN MANGANESE INC.

Larry W. Reaugh
President and Chief Executive Officer


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