Make Kitco Your Homepage

Tesla mulling takeover of Sigma Lithium - Bloomberg

Kitco News

Brazilian-focused Sigma Lithium (NASDAQ:SGML) is a possible target for Tesla, reported Bloomberg in a report published yesterday.

The discussions are confidential. Sigma Lithium is one of a number of companies being considered by Tesla.

Sigma Lithium is currently commissioning its wholly owned Grota do Cirilo Project in Brazil. Phase 1 of the project is to produce 270,000 tonnes annually (36,700 LCE annually).

If it is determined to proceed, Phase 2 & 3 of the project are expected to increase production to 766,000 tonnes annually (or 104,200 LCE annually) of battery grade sustainable lithium concentrate in a state-of-the-art Greentech lithium plant that uses 100% renewable energy, 100% recycled water and 100% dry-stacked tailings.

Sigma Lithium already has an offtake partner, LG Energy Solution.

In after-hours trading, Sigma is up 24% to $29.48 a share. The company has a market cap approaching $4 billion.

Last month GM made a $650 million investment in Lithium Americas to support the miner's Thacker Pass development.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.