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Tesla mulling takeover of Sigma Lithium - Bloomberg

Michael McCrae

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.

By Michael McCrae

For Kitco News

Contact mmccrae@kitco.com
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