US Tariffs Shake Graphite Market: Can Kasiya Fill the Supply Chain Void?

A New Era in Graphite Supply Chains

The global graphite market is undergoing a seismic shift following the US Commerce Department’s recent imposition of a 93.5% preliminary anti-dumping tariff on Chinese graphite imports. When combined with existing tariffs, this effectively creates a 160% cost barrier for Chinese graphite entering the US market. Given China’s dominant control; approximately 75% of global graphite production and 97% of anode processing; this disruption has sent battery manufacturers scrambling for reliable, cost-effective alternatives.

Enter Sovereign Metals Limited and its Kasiya Rutile-Graphite Project in Malawi. Positioned to become the world’s largest and lowest-cost natural graphite producer outside China, Kasiya is uniquely poised to capitalize on this geopolitical and market realignment. The company’s latest announcement reveals successful optimisation testwork on coated spherical purified graphite (CSPG), a key battery anode material, underscoring Kasiya’s technical and commercial readiness.

Technical Validation of Premium Graphite Quality

Conducted by Prographite GmbH, the recent testwork focused on refining the pitch coating process that converts spherical purified graphite (SPG) into CSPG. This coating enhances battery performance and longevity by creating protective carbon-rich layers on graphite particles. The results were compelling – Kasiya graphite met or exceeded all critical performance specifications, including discharge capacity above 360mAh/g and first cycle efficiency exceeding 94%. Physical properties such as specific surface area and tap density also aligned with premium anode material standards.

These findings reinforce previous testwork and demonstrate Kasiya’s graphite as a world-class product suitable for high-performance lithium-ion batteries. The consistency and quality of the CSPG produced provide a strong foundation for Sovereign Metals’ ongoing offtake negotiations with leading anode manufacturers, a crucial step toward commercialisation.

Strategic Market Implications and Supply Chain Diversification

The new US tariffs have exposed critical vulnerabilities in the graphite supply chain, heavily reliant on Chinese sources. Major battery producers like Tesla and Panasonic have voiced concerns over the ability of US producers to meet quality and volume requirements, highlighting a gap that Kasiya could fill. Sovereign Metals’ Managing Director Frank Eagar emphasised Kasiya’s strategic importance, noting its resource scale, long mine life, and cost advantages as key differentiators in a market urgently seeking secure, diversified supply chains.

With initial samples already distributed to leading anode producers and plans underway for larger-scale pilot processing, Sovereign is actively advancing customer qualification and offtake discussions. This momentum aligns with broader industry trends prioritising supply chain resilience amid geopolitical tensions and trade barriers.

Looking Ahead – From Feasibility to Market Impact

Sovereign Metals is progressing toward a definitive feasibility study following its January 2025 optimised pre-feasibility results. The company’s ability to maintain premium graphite quality while optimising production costs positions Kasiya as a compelling alternative to Chinese graphite. However, the path to commercial production and market penetration will require navigating evolving trade policies, securing binding offtake agreements, and scaling processing capabilities.

Investors and industry watchers will be closely monitoring Sovereign’s next steps, as Kasiya’s success could significantly influence global battery supply chains and the competitive landscape of graphite producers.