Rio Tinto-backed Sovereign Metals partners with World Bank's IFC for Malawi graphite project

Sovereign Metals

15/12/2025 23:33

Dec 16 (Reuters) - Australia's Sovereign Metals SVM.AX said on Tuesday that it had signed an agreement with the World Bank's International Finance Corporation (IFC) for the development of its Kasiya Rutile-Graphite project in Malawi.

Under the agreement, the World Bank member is expected to finance the graphite project should Sovereign, 18.45% owned by Anglo-Australian mining giant Rio Tinto RIO.AX as per LSEG data, seek funds for its construction.

Kasiya project is the world's largest rutile and second largest graphite deposit, Sovereign said.

The partnership comes as Western countries race to lock in alternative sources of critical minerals, seeking to loosen China's grip on a market increasingly strained by supply chain disruptions and escalating trade tensions.

Graphite, which is on the draft U.S. Geological Survey list of critical minerals for the U.S. economy and national security, is a component in rechargeable batteries for electric vehicles.

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Shailesh Kuber)

 ((Nichiket.Sunil@thomsonreuters.com))