Mining & Trade News

ASX-listed Sovereign Metals has announced that at a time of unprecedented disruption in global graphite markets, with new U.S. tariffs fundamentally altering supply chain dynamics, the latest testwork on its graphite from the Company's Kasiya Rutile-Graphite Project in Lilongwe has delivered highly successful results.

The testwork focused on optimising the coating process for conversion of Kasiya derived spherical purified graphite (SPG) to coated spherical purified graphite (CSPG) while maintaining premium performance. The results will assist with ongoing offtake discussions with anode manufacturers.

Sovereign is developing Kasiya to potentially become the world's largest and lowest-cost natural graphite producer outside of China. MD and CEO Frank Eagar says: “Kasiya remains a primary rutile project, but our ability to also produce exceptional CSPG with world-class performance characteristics from our natural graphite concentrate is a further demonstration of the geopolitically strategic nature of Kasiya.”

“These new U.S. tariffs on Chinese graphite highlight the urgent need for reliable, high-quality alternatives. Kasiya's resource scale, long life, potentially lowest-cost non-Chinese producer, combined with our demonstrated technical excellence, positions us perfectly to serve battery manufacturers seeking secure supply chain diversification.”

Strategic Market Opportunity

The global graphite supply chain is experiencing fundamental realignment following the U.S. Commerce Department's 17 July 2025 announcement of 93.5% preliminary anti-dumping duties on Chinese graphite imports. Combined with existing tariffs, this creates an effective 160% barrier on Chinese graphite, fundamentally altering the economics for battery manufacturers seeking secure, cost-competitive supply chains. China currently controls approximately 75% of global graphite production and 97% of anode material processing, creating critical supply chain vulnerabilities that major battery manufacturers are now actively addressing.

Tesla, Inc. (Tesla) and Panasonic were among companies that opposed the new US tariffs, with Tesla’s submission to the U.S. Government stating that U.S. graphite producers have yet to demonstrate the “technical ability to produce commercial quantities” of graphite at the quality and purity required by Tesla and other battery cell manufacturers.

Eagar explains that once developed, Kasiya has the potential to become the world's largest and lowest-cost natural flake graphite producer, offering battery manufacturers a strategic alternative to Chinese supply chains for anode material feedstock.

“The latest successful coating testwork is a further demonstration of Kasiya’s increasing strategic importance,” he says.

Latest Testwork Validates Kasiya Graphite’s World-Class Quality to Anode Manufacturers

Optimisation testwork conducted by Prographite GmbH (Prographite) has once again demonstrated the exceptional characteristics of Kasiya graphite for CSPG production. The optimisation process successfully achieved target coating specifications and optimised inputs into the coating process while maintaining the premium performance metrics that position Kasiya graphite among the highest-quality sources globally.

Pitch coating is a standard refinement process where carbon-rich pitch material is applied to spherical graphite particles to create protective layers that enhance battery performance and longevity, turning SPG into CSPG. The latest testwork systematically evaluated pitch content to achieve optimal performance parameters.

 Key achievements from the process include:

• Process Efficiency Demonstrated:   Coating requirements optimised while   maintaining superior CSPG   characteristics.

• Premium Performance Maintained:   All target specifications achieved for   discharge capacity (>360mAh/g) and   first cycle efficiency (>94%).

• Physical Properties Achieved: Specific surface area (1.0 g/cm³) specifications met. Eagar explains that the data confirms that Kasiya graphite consistently delivers discharge capacity well above the critical 360mAh/g threshold while achieving first cycle efficiency above 94% - both key specifications for premium-quality natural graphite anode materials.

Customer Engagement Advances with Market Dynamics Creating Strategic Advantage

Eagar reports that initial samples of Kasiya fine flake graphite concentrate have been distributed to leading natural graphite anode producers and anode project developers.

He says these strategic engagements will support the development of offtake agreements while validating market demand for Kasiya's high quality battery-grade graphite.

“The Company continues advancing additional pilot-scale graphite concentrate processing to supply further concentrate material, with planning underway for a larger-scale concentrate processing run. These programs will support expanded customer qualification programs as development advances.” Eagar says.

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