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Sovereign Metals inks graphite marketing MOU with Project Vault partner Traxys Proactive uses images sourced from Shutterstock <\/p>\n Sovereign Metals inks graphite marketing MOU with Project Vault partner Traxys Proactive uses images sourced from Shutterstock <\/p>\n
Sovereign Metals Ltd (ASX:SVM, OTCQX:SVMLF, AIM:SVML, FRA:SVM)<\/a> has signed a non-binding memorandum of understanding (MOU) with Traxys North America LLC to market graphite from its Kasiya Rutile-Graphite Project in Malawi \u2014 linking the project to a trading house recently appointed to procure critical minerals for the United States\u2019 new strategic reserve.<\/p>\n Traxys is one of only three trading houses selected to procure materials under Project Vault, the US$12 billion public-private initiative launched this month to establish a US Strategic Critical Minerals Reserve. The move places Kasiya\u2019s planned graphite production in proximity to a government-backed stockpiling program aimed at reducing reliance on Chinese-dominated supply chains.<\/p>\n Under the MOU, Traxys would act as marketing agent for Kasiya\u2019s graphite concentrate, targeting an indicative 40,000 tonnes per annum during Stage 1 (years one to five) and potentially increasing to up to 80,000 tonnes per annum as the project expands.<\/p>\n Managing director Frank Eagar said the appointment marked a significant endorsement of Kasiya\u2019s scale and strategic relevance.<\/p>\n \u201cGraphite is designated as a US Critical mineral and is squarely in the crosshairs of US policy to reduce dependence on Chinese-dominated supply chains,\u201d Eagar said.<\/p>\n \u201cTraxys\u2019s direct involvement in Project Vault, combined with its extensive network of industrial customers globally, positions Kasiya\u2019s potential graphite production to serve both strategic government procurement programmes and established commercial markets,\u201d he added.<\/p>\n \u201cThis MOU demonstrates growing confidence from major global commodity players in Kasiya\u2019s ability to potentially deliver critical minerals at scale from a globally strategic, genuine Tier 1 project.\u201d<\/p>\n Sovereign, Traxys and US Department of State Meeting during Mining Indaba 2026 (Left to Right: Sovereign\u2019s Chief Commercial Officer Sapan Ghai, Managing Director Frank Eagar, Traxys CEO Mark Kristoff and US Department of State Senior Advisor Christopher Kulukundis).<\/p>\n Project Vault was launched on February 2 as a first-of-its-kind initiative backed by a US$10 billion loan from the US Export-Import Bank and around US$2 billion in private capital. The program is designed to stockpile critical minerals considered essential for national security, economic stability and supply chain resilience.<\/p>\n Graphite is designated a US Critical Mineral by the US Geological Survey and is among the 60 materials targeted under the stockpiling initiative. The list also includes titanium and rare earth elements such as dysprosium, terbium and yttrium \u2014 all commodities that feature at Kasiya alongside rutile and graphite.<\/p>\n The global graphite market is heavily concentrated in China, which dominates both mining and downstream processing. In that context, alternative large-scale sources of flake graphite are attracting growing policy and commercial interest from Western governments and manufacturers.<\/p>\n Traxys CEO Mark Kristoff said the company was \u201cproud to be a critical minerals supplier for Project Vault\u201d, describing the \u201cgroundbreaking initiative\u201d as one that \u201cbolsters the supply chain of critical minerals for American manufacturers and enhances national economic security.\u201d<\/p>\n Major US manufacturers including General Motors, Boeing and Alphabet\u2019s Google are also participating in the program.<\/p>\n The MOU contemplates negotiation of a binding marketing agreement covering five to 10 years of production from Kasiya.<\/p>\n Initial product focus would be on high-value flake graphite for the refractory market, specifically material of +100 mesh or larger. There is also potential to supply flake graphite into battery anode supply chains, reflecting the material\u2019s role in lithium-ion batteries.<\/p>\n Pricing remains to be agreed. Traxys would receive an indicative commission of 6% for marketing and selling graphite on Sovereign\u2019s behalf. Delivery terms would be on an FOB Mozambique port basis, CIF discharge port, or another mutually agreed port of loading.<\/p>\n The agreement is non-exclusive and non-binding, other than standard provisions relating to confidentiality, compliance, governing law and anti-bribery. Any binding marketing agreement would remain subject to board approvals and the rights of Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF)<\/a>\u00a0under its existing investment agreement with Sovereign.<\/p>\n For investors, the MOU builds on recent quarterly commentary highlighting Kasiya\u2019s rare earth and graphite upside, and underscores how the project is being positioned within emerging Western critical minerals supply chains.<\/p>\n <\/p>\n