Tesla Looking at Sigma Lithium
On Friday, February 17th, 2023, the U.S.-listed shares of Sigma Lithium Corp surged 21% in extended trading after rumours emerged hat Tesla was considering a takeover of the Canada-based battery metals miner. Newa surfaced that Tesla had been speaking with potential advisers about a bid, and that Sigma Lithium was one of the many mining options the electric-vehicle maker was exploring as it mulls its own refining.
Sigma Lithium is currently finishing the construction of a hard rock lithium mine in Brazil, which it expects to open by April. The mine will produce spodumene concentrate, which can be used to make lithium hydroxide, a type of the metal preferred by some automakers including Tesla and BMW. Additionally, the project will use hydroelectric power, which will greatly reduce its carbon footprint.
Sigma Lithium’s market capitalization is currently at $3.21 billion, and its U.S. stock nearly tripled in value last year. Tesla has been in talks with many mining companies, including Sigma Lithium, to secure its supply of electric vehicle metals, without necessarily signing contracts.
Last month, Tesla signed an agreement with Piedmont Lithium Inc for the supply of spodumene concentrate from Quebec, starting later this year. Tesla also has supply contracts for nickel, lithium, and other EV metals from suppliers across the globe. Last year, Tesla’s CEO Elon Musk had stated that the company was open to buying a mining company if producing its own supply of electric vehicle metals would speed up worldwide adoption of clean energy technologies. Neither Tesla nor Sigma Lithium has provided any comment on the recent acquisition rumors.
About Sigma Lithium
Sigma Lithium is a Canada-based company focused on the production of lithium concentrate and development of a sustainable battery metal supply chain. The company’s primary asset is the Grota do Cirilo hard rock lithium project, located in Brazil, which is currently in the final stages of construction and is expected to begin production in April 2023. The project is designed to produce high-quality spodumene concentrate, which can be used to produce lithium hydroxide, a preferred battery metal used by some automakers like Tesla and BMW. Sigma Lithium is committed to sustainable development and aims to minimize the environmental impact of its operations by using hydroelectric power in its production process. The company’s stock is listed on the Toronto Stock Exchange and the Nasdaq.