ASX- and Aim-listed Sovereign Metals has also started trading on the OTCQX under the ticker symbol SVMLF.
The OTCQX is the highest market tier of OTC markets on which more than 12 000 US and global securities trade.
Sovereign previously traded on the OTC Pink Market and has now been upgraded to the OTCQX as it meets the financial standards required, adheres to the necessary corporate governance expectations and is compliant with applicable securities laws.
Trading on the OTCQX began on July 5 and is expected to enhance the company’s visibility and accessibility to US investors.
Sovereign aims to become a major non-Chinese supplier of titanium, in the form of rutile, and graphite, to global markets. China currently dominates the supply of both of these critical minerals.
Rutile is the purest, highest-grade natural form of titanium dioxide (TiO2) and is the preferred feedstock in manufacturing titanium pigment and producing titanium metal. Titanium is essential for various industries, including aerospace, defence, pigments, medical and consumer technologies.
A US geological survey has shown that China and Russia currently control about 70% of the global primary titanium supply chain. As it stands, the US relies entirely on foreign sources for titanium sponge, yet based on the US Commerce Department’s Bureau of Industry and Security, titanium supports 15 out of 16 critical infrastructure sectors deemed essential by the federal government.
Graphite is a crucial mineral for the global energy transition as it forms the largest component of lithium-ion batteries used in electric vehicles and other energy storage solutions. Graphite anode material can be up to 50% of the mass of a typical lithium-ion battery.
A study done by S&P Global showed that, in 2023, 77% of the world’s graphite production came from China, with the US importing 42% of its graphite supply from China.
In December last year, China imposed several restrictions on the export of graphite concentrate. In May, the US government imposed a 25% tariff on all natural graphite imported from China from 2026 onwards.
Sovereign’s 100%-owned tier-one Kasiya rutile/graphite project, in Malawi, is currently the world’s largest known rutile deposit and second-largest flake graphite deposit. The company believes that Kasiya can become a long-term secure source of natural graphite supply outside of China.
Through numerous technical studies, Sovereign has confirmed that the Kasiya project could be the largest and lowest-cost producer of rutile and graphite and is currently undertaking an optimisation study.
Sovereign’s strategic investor Rio Tinto continues to provide assistance and advice on technical and marketing aspects of Kasiya. Give the current plan, the mine could also have the lowest greenhouse-gas emissions of any high-grade titanium feedstock or graphite producer globally, Sovereign says.