What is a electrolytic manganese dioxide project report?
An electrolytic manganese dioxide project report is a detailed project report (DPR) for a plant that dissolves manganese ore into sulphate solution and electrolyses it into battery-grade manganese dioxide. It covers the process, cells and rectifiers, raw materials, market, project cost, means of finance, five-year projections, DSCR and break-even.
Promoters use it to size the plant and raise a term loan; banks and battery makers use it to judge whether the unit can hold grade and repay.
Also known as: EMD project report, EMD plant feasibility report, electrolytic manganese dioxide business plan, DPR for EMD manufacturing.
Electrolytic manganese dioxide plant cost in India and economics
Our sample report models a plant of 3.4 metric tonnes per day (MT per day), or 1,122 MT a year over 330 working days. It starts at 60% of capacity and reaches 80% in Year 5, selling at ₹1,97,000 per MT before GST.
Plant and machinery is just over half the project cost, because electrolytic cells, titanium anodes and the rectifier are expensive for the tonnage they produce. That is why an EMD plant needs more capital per tonne than most metal or chemical units of the same output.
| Land and site development | 78.92 |
|---|---|
| Building and civil works | 219.25 |
| Plant and machinery | 510.83 |
| Other fixed assets | 57.42 |
| Contingencies | 36.50 |
| Preliminary and pre-operative | 22.57 |
| Working capital margin | 52.01 |
| Total | 977.50 |
| Promoter's contribution (25%) | 244.38 |
|---|---|
| Term loan from bank (75%) | 733.12 |
| Cash credit limit (separate) | 156.03 |
| Total project cost | 977.50 |
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Electrolytic manganese dioxide manufacturing process
The ore route below is the one modelled in our sample. Each stage exists to get a manganese sulphate solution clean enough that the dioxide plated from it meets battery specifications.
- Reduction roasting
Ground manganese dioxide ore is roasted with coal in a rotary kiln at about 700–900 °C, turning insoluble MnO2 into manganese oxide that dissolves in acid.
- Leaching
The roasted ore is dissolved in sulphuric acid and returned spent electrolyte at roughly 70–90 °C to give manganese sulphate solution.
- Iron removal
Iron is oxidised and precipitated by raising the pH with limestone or lime, so it settles out before electrolysis.
- Heavy metal removal and filtration
Sulphide reagents drop out copper, nickel, cobalt and similar metals, and filter presses separate the clear solution from residue and sludge.
- Electrolysis
Hot solution at about 90–98 °C flows through cells where MnO2 plates onto titanium anodes at low current density, while hydrogen forms at the cathodes.
- Stripping and crushing
When the deposit is thick enough, the anodes are lifted out and the hard MnO2 layer is stripped, crushed and milled.
- Washing and neutralising
The powder is washed and neutralised with soda ash to remove trapped acid and bring pH into the buyer's range.
- Drying, testing and packing
Dried EMD is checked for MnO2 content, iron, lead, moisture and particle size, then packed in lined bags by lot.
EMD, CMD or natural manganese dioxide: which route fits your plant?
Battery makers buy manganese dioxide in three forms, and an EMD plant can start from ore or from bought-in manganese sulphate. The choice sets your capital cost, your raw material risk and the buyers you can sell to.
| Natural manganese dioxide (NMD) | High-grade ore that is only ground and sized. Indian Bureau of Mines user specifications for dry cell use ask for 70% MnO2 minimum. Cheapest, but suited only to zinc carbon cells. |
|---|---|
| Chemical manganese dioxide (CMD) | Made by chemical precipitation and oxidation instead of electrolysis. It needs no cell house, but it is a separate process with its own buyer qualification. |
| Electrolytic manganese dioxide (EMD) | Plated from purified sulphate solution. User specifications ask for 90% MnO2 minimum with iron and lead held very low. It is the grade alkaline cells need. |
| Ore route (our sample) | Kiln, leaching and purification on site. Lower feed cost and control over the chain, but more equipment, more residue and more process risk. |
| Manganese sulphate route | Buy purified sulphate and run only electrolysis and finishing. Less capital and a faster start, but feed cost and supply depend on one or two sellers. |
Raw materials for an EMD plant
Ore is the largest raw material cost in our sample, and its quality matters as much as its price. Ore high in iron, copper, nickel or cobalt raises reagent use and sludge volume, and can keep the product out of battery grade.
Sulphuric acid is the second input. Electrolysis regenerates acid in the cell, so the spent electrolyte goes back to leaching and fresh acid only makes up losses.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| High-grade manganese dioxide ore | 48% | 329.09 |
| Sulphuric acid | 30% | 205.68 |
| Reducing coal for roasting | 8% | 54.85 |
| Limestone and lime | 6% | 41.14 |
| Purification reagents | 4% | 27.42 |
| Soda ash for neutralising | 4% | 27.42 |
| Total | 100% | 685.60 |
Raw materials are 44.3% of sales in the sample. Get an ore analysis and test leach before you fix a supplier.
Machinery for electrolytic manganese dioxide production
The cell house is the heart of the plant. In our sample the electrolytic cells with titanium anodes are the costliest item, followed by the leaching and purification reactors and the rectifier set.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Rotary reduction kiln with cooler | Roasts ore with coal so it dissolves in acid | 66.41 |
| Leaching and purification reactors | Make and clean the manganese sulphate solution | 71.52 |
| Filter presses and solution tanks | Separate residue and hold clear electrolyte | 40.87 |
| Electrolytic cells with titanium anodes | Plate MnO2 from hot solution | 153.25 |
| Rectifier and transformer set | Supply direct current to the cells | 71.51 |
| Crushing, grinding and washing system | Turn stripped deposit into clean powder | 45.97 |
| Dryer and bagging unit | Dry to moisture limit and pack by lot | 30.65 |
| Effluent treatment and acid mist scrubber | Treat wash water and capture cell-house mist | 30.65 |
| Total plant and machinery | 510.83 | |
Costs are the sample report's estimates for a 3.4 MT per day plant. Get current quotations, including anode life and recoating terms, before you finalise.
Power, water and manpower for an EMD plant
Running costs in an EMD plant are set by the cell house: it draws direct current around the clock and its electrolyte is kept close to boiling. These are the figures our sample uses.
| Power and fuel | ₹126.12 lakh in Year 3, or 8.2% of sales, covering the rectifier load, kiln fuel, electrolyte heating and drying |
|---|---|
| Power connection | A high-tension supply sized for the rectifier, with a DG set usually sized for auxiliaries rather than the cell load |
| Water | Process water for leaching and make-up, and clean water for washing the final product, with wash water treated and reused |
| Manpower | 52 people: 8 in management and supervision, 18 skilled operators and 26 semi-skilled and unskilled workers, costing ₹111.96 lakh in Year 1 |
| Land and building | ₹78.92 lakh for land and site development and ₹219.25 lakh for buildings, including an acid-resistant cell house floor |
| Working capital | ₹208.04 lakh in Year 1, based on 30 days of raw material, 15 days of finished goods and 45 days of credit to buyers |
Licences and approvals for an electrolytic manganese dioxide plant
| Business registration | Udyam (MSME) registration and GST registration |
|---|---|
| Pollution board consent | Consent to establish and to operate from the State Pollution Control Board, covering kiln emissions, acid mist, wash water and residue. Confirm the category with the board before buying land |
| Waste handling | Authorisation from the State Pollution Control Board where leach residue or purification sludge is classed as hazardous waste, with a disposal route agreed in advance |
| Factory licence | Under the Factories Act, with a safety plan for acid storage and hot electrolyte; rules vary by state |
| Product standard | IS 11153:1996, Manganese dioxide for dry batteries, is the Bureau of Indian Standards reference; battery makers also test against their own specification |
| Power | High-tension connection sanctioned for the rectifier and plant load |
Market for electrolytic manganese dioxide in India
India makes very little EMD. The Indian Bureau of Mines yearbook released in February 2024 names MOIL as the producer. Its 1,500 tonnes per year plant at Dongri Buzurg mine in Bhandara, Maharashtra, made about 1,202 tonnes in 2021-22.
The same yearbook records 11,268 tonnes of manganese dioxide imports in 2021-22, of which 6,935 tonnes came from China. That gap is the case for a domestic plant. MOIL's EMD price letter effective 1 April 2026 sets ₹1,80,000 per MT basic, ex-mine (checked October 2026); our sample uses ₹1,97,000 per MT as an illustrative figure.
- Alkaline battery manufacturers
- Zinc carbon dry cell makers
- Lithium manganese oxide cathode producers
- Lithium primary cell makers
- Chemical traders and importers
Where a new plant wins: battery makers switch suppliers only after trial lots pass their discharge and impurity tests. A plant that plans for qualification and delivers the same grade every month can replace imported material.
Mistakes that weaken an electrolytic manganese dioxide project report
- Taking power as a minor cost
Electrolysis, kiln and drying all use energy. Check the power figure against your tariff and the cell supplier's energy guarantee, and show what a higher tariff does to DSCR.
- Assuming any manganese ore will do
Iron and heavy metals drive purification cost and grade. The report should name the ore source and its analysis, not a generic grade.
- Selling at full volume from day one
Battery makers qualify a new supplier slowly. Year 1 sales should allow for trial lots and approval time.
- Leaving out residue and effluent costs
Leach residue, iron sludge and acidic wash water need treatment and disposal. Omitting them under-states both capital and running cost.
- Ignoring anode life
Titanium anodes lose activity and need recoating or replacement. A report without that cost overstates later-year profit.
How NPCS helps you set up an EMD plant
- Route and capacityCompare the ore route with bought-in manganese sulphate, and size the cell house to your market.
- Cells and suppliersShortlist cell, anode, rectifier and kiln suppliers and compare quotations.
- Bank-ready project reportProjections, DSCR, power sensitivity and working capital in the format your lender wants.
- Approvals and layoutPlant layout, acid handling, effluent plan and the approvals list for your state.
NPCS's client list includes 2 assignments for electrolytic manganese dioxide and 116 in metal products. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the electrolytic manganese dioxide sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Electrolytic Manganese Dioxide project report: frequently asked questions
How much does it cost to set up an electrolytic manganese dioxide plant in India?
Our sample report models a 3.4 MT per day plant at a total project cost of ₹977.50 lakh, of which plant and machinery is ₹510.83 lakh. The real figure depends mostly on the number of cells and the rectifier rating, and on whether you roast and leach ore yourself or buy manganese sulphate. Your project report works out the cost for your capacity and site.
What is electrolytic manganese dioxide used for?
Its main use is the cathode of alkaline batteries, where its purity and discharge performance matter most. It is also used in zinc carbon dry cells, where manganese dioxide acts as the depolariser, in lithium primary cells and as a feed for lithium manganese oxide cathode material. Battery makers are therefore the buyers a new plant has to qualify with.
What raw materials are needed to make EMD?
High-grade manganese dioxide ore and sulphuric acid are the main inputs. Smaller inputs are coal for roasting, lime and limestone for iron removal, sulphide reagents and soda ash. In our sample report ore is 48% and sulphuric acid 30% of raw material cost. Spent electrolyte returns acid to leaching, which cuts fresh acid use.
Is an electrolytic manganese dioxide plant profitable?
In our illustrative sample, a 3.4 MT per day plant earns a 26.8% return on investment in Year 3. It breaks even at 33.7% of capacity, pays back in about 3.1 years and has an average DSCR of 2.08. Real profit depends on ore quality, power tariff, current efficiency and how fast battery makers approve your grade.
What is the difference between EMD and natural manganese dioxide?
Natural manganese dioxide is high-grade ore that is simply ground, while EMD is deposited electrically from purified manganese sulphate solution. That makes EMD far purer: Indian Bureau of Mines user specifications ask for 90% MnO2 minimum for EMD against 70% for natural ore used in dry cells. Alkaline batteries need EMD; cheaper zinc carbon cells can use blends.
Can I get a bank loan or CGTMSE cover for an EMD plant?
Banks fund EMD plants through a term loan plus a cash credit limit, after checking the project report, ore supply and buyer interest. Eligible micro and small enterprises can get CGTMSE guarantee cover of up to ₹10 crore, effective 1 April 2025. Our sample assumes a ₹733.12 lakh term loan at 10.5%. Confirm current terms with your bank.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so do not submit it to a bank. For a loan, NPCS prepares a report for your own capacity, ore source, location and lender.
Sources and references
- Indian Minerals Yearbook 2022, Manganese Ore (advance release, February 2024)Indian Bureau of Mines, Ministry of Mines, checked Oct 2026
- EMD price letter, effective 1 April 2026MOIL Limited, checked Oct 2026
- MOIL Limited information noteMinistry of Steel, Government of India, checked Oct 2026
- Speciality and adsorbent chemicals standards list (IS 11153:1996, Manganese dioxide for dry batteries)Bureau of Indian Standards, checked Oct 2026
- Credit Guarantee Scheme for Micro and Small Enterprises: scheme guidelinesOffice of the Development Commissioner (MSME), Ministry of MSME, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.