Sovereign Metals sets focus on becoming largest producer of both rutile and graphite (ex-China)

Sovereign Metals Ltd is focused on developing its Kasiya Rutile-Graphite Project in Malawi to become a leading global supplier to the titanium and graphite industries.

Kasiya is the world’s largest natural rutile deposit – the purest, highest-grade naturally occurring titanium feedstock – and the world’s second-largest flake graphite deposit – a battery mineral essential for the energy transition.

Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has reported strong results from its 2025 Conservation Farming Program in Malawi, with participating farmers recording average maize crop yields four times higher than those achieved through traditional methods. The program, designed to support communities near the company’s Kasiya Rutile-Graphite Project, saw its top performer increase yields by a remarkable 10 times.

This year’s initiative expanded significantly, growing from an initial 90 participants to 350 local smallholder farmers — half of whom are women — demonstrating strong community uptake and the potential for scalable impact. According to the company, participating households are now producing enough to meet their food needs and generate surplus for sale, enabling investments in home upgrades and small businesses.

Conservation farming vs. conventional farming methods

Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) has achieved a major validation for its flagship Kasiya Rutile-Graphite Project in Malawi, with Japan’s Toho Titanium confirming that rutile from Kasiya is suitable for producing high-specification titanium metal products.

This validation strengthens Sovereign's position as a key player in the global titanium supply chain, especially in light of growing geopolitical tensions and the increasing demand for titanium in critical industries.

Sovereign Metals Ltd has signed a non-binding Memorandum of Understanding (MOU) with the Electricity Supply Corporation of Malawi (ESCOM) to secure long-term renewable energy supply for its Kasiya Rutile-Graphite Project. The agreement outlines a path to access 60 megawatts (MW) of hydropower through a grid connection to the Nkhoma Substation, supporting steady-state operations at Kasiya from year six.

This development coincides with a significant energy milestone for Malawi. The World Bank has approved a US$350 million (AU$545M) grant to support the landmark Mpatamanga Hydropower Storage Project (MHSP), which will add 358MW of capacity to Malawi’s national grid by 2030. The dual developments are pivotal for both Kasiya’s feasibility and the country's broader economic infrastructure.

Brokerage Stifel has initiated coverage of Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) with a buy rating and a 65p price target.

Analysts cited the development of Sovereign’s Kasiya project in central Malawi as key to the company’s investment thesis.

“Within five years of its discovery, Kasiya has rapidly demonstrated potential to become a significant producer of two critical minerals: natural rutile, the purest form of titanium dioxide, and flake graphite.

Proactive’s Tylah Tully breaks down ‘Just the Facts’ of Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) latest ASX announcement.

It’s has installed and commissioned an industrial-scale spiral concentrator plant at its Lilongwe facility in Malawi. This development is part of the company’s Kasiya Rutile-Graphite Project, aimed at increasing graphite production and progressing discussions with both lithium-ion battery manufacturers and traditional graphite markets. The plant has a processing capacity of up to three tonnes per hour and produces large-scale graphite pre-concentrate for customer qualification.

This new facility is a crucial step towards Sovereign’s goal of becoming a leading global producer of rutile and flake graphite, serving sectors such as electric vehicles, energy storage systems, refractories, and foundries. Additionally, it will provide vital training for Malawian employees in preparation for full-scale operations. The plant employs a gravity-based process similar to that outlined in the company's 2023 pre-feasibility study, with ongoing optimisation overseen by the Sovereign-Rio Tinto Technical Committee.