Sovereign Metals Limited (ASX:SVM, OTC:SVMLF, AIM:SVML) has kicked off a bulk sample program for its graphite – aiming to qualify, conduct downstream test work and develop new products.
The company is upgrading its facilities in Malawi to facilitate continuous production of bulk samples for marketing purposes.
Sovereign's Kasiya Project in Malawi has the potential to become one of the world's lowest-cost and lowest-carbon potential sources of natural rutile and graphite.
Lowest cost; lowest carbon
“Kasiya will potentially be one of the lowest cost flake graphite projects in the world and is also estimated to have one of the lowest global warming potentials of any current and future graphite projects,” Sovereign managing director Julian Stephens said.
“Sovereign wants to be at the forefront of these critical mineral supply chains and today’s announcement is another important step towards achieving that.
“The world’s economies need surety of supply for high-quality, low-carbon-footprint graphite suitable for use in lithium-ion batteries.
“Without graphite, there is no electric vehicle revolution. The US, Japan and the EU see it as a critical mineral and have allocated many billions of dollars towards securing graphite supply.”
Larger volumes of natural graphite
The bulk sample program focuses on producing larger volumes of natural graphite from the Kasiya deposit.
This initiative aligns with Sovereign's graphite marketing strategy, aiming to establish Kasiya as a major supplier of two critical minerals: natural flake graphite and natural rutile.
Kasiya is home to the largest natural rutile deposit and one of the largest flake graphite deposits globally. These minerals are essential for various economies and play a crucial role in achieving decarbonization solutions required to meet net-zero and other policy-driven targets.
The samples extracted from the bulk sample program will be used for downstream test work and product qualification, particularly in the lithium-ion battery sector. The initial four tonnes of flake graphite pre-concentrate, produced at Sovereign's laboratory in Malawi, are now prepared for dispatch to the renowned laboratory SGS Lakefield for further testing.
A significant upgrade is underway at the laboratory to facilitate continuous bulk sample production in the future.
Excellent suitability for batteries
Initial characterisation test work on Kasiya's graphite has already demonstrated excellent suitability for use in lithium-ion batteries.
Sovereign intends to actively market Kasiya's graphite to end-users. The company has already secured rutile offtake Memorandums of Understanding with major blue-chip partners, including Mitsui from Japan and Chemours, a US-listed company.
Various government initiatives announced by G7 and other world economies are focusing on securing the supply of graphite and other critical minerals. Sovereign aims to align its product marketing strategy with high-quality partners and brands during the technical study and development phases.
This approach will enable the complete qualification of Kasiya's future products for end markets, particularly the rapidly growing lithium-ion battery anode market, which has now become the largest end market for natural flake graphite.
The demand for high-quality flake graphite continues to increase due to global decarbonization requirements, with anodes experiencing a growth rate of 46% in 2022 compared to only 14% growth in the supply of natural flake graphite.
Read more on Proactive Investors AU
