Mining giant Rio Tinto has increased its shareholding in Australian-listed graphite developer Sovereign Metals to 19.9%, the highest level it can hold without triggering a takeover offer.
This move comes as China restricts exports of graphite, a critical mineral used in electric vehicle batteries.
Rio first acquired a 15% stake in Sovereign Metals last year for A$40 million to support a feasibility study for the Kasiya mine in Malawi.
The Kasiya deposit contains significant graphite reserves and is also one of the largest known sources of rutile, a rare titanium oxide used in industries ranging from aerospace to skincare due to its strength and lightweight properties.
Amid rising security concerns in the US and Europe about China’s control over these critical materials, Rio Tinto’s increased stake signals growing interest in securing alternative supplies of graphite and rutile.