#SigmaLithium #LithiumProduction #GreenTech #BrazilMining #SustainableEnergy #ElectricVehicles #MinasGerais #LithiumMarket
Sigma Lithium (NASDAQ: SGML; TSXV: SGML) recently disclosed plans to significantly enhance its lithium production capabilities by introducing a second production line at its Greentech industrial plant located in Brazil. This ambitious expansion is set to boost the lithium production at its Grota do Cirilo project, situated in the Minas Gerais state, to a staggering 520,000 tonnes annually by the year 2025. This represents a sizeable increase from its present output of 270,000 tonnes.
The financial commitment to this expansion, denoted as Phase 2 of the project, is estimated at $100 million. Sigma Lithium aims for the commissioning of this new plant by the end of this year, with the anticipation of first production by the initial quarter of 2025.
In early 2023, the company secured an environmental licence from the state government, a crucial step that paved the way for the installation and operational commencement of the new plant. In a further development, Sigma received a letter of intention from the Development Bank of Brazil (BNDES) in February, indicating potential additional funding directed towards the Grota do Cirilo project.
Sigma Lithium stands as the world’s sixth-largest integrated producer of lithium concentrate. This expansion cements its position further in the global lithium market, primarily driven by the increasing demand for lithium ion batteries in electric vehicles and other sustainable technologies. Over its first calendar year of operations, Sigma’s mine has successfully produced over 105,000 tonnes of lithium concentrate, with 52,800 tonnes produced in the first quarter of 2024 alone.
For the year 2023, Sigma reported revenues reaching $135.1 million, highlighting a significant financial performance and ending the fourth quarter with $48.5 million in cash and cash equivalents. This marked an impressive financial growth from the $28 million recorded at the end of the previous September quarter.
CEO Ana Cabral attributed the expansion to the exceptional customer demand exceeding the capacities of their initial production phase. She emphasized the superior quality of Sigma’s lithium products, which stand out due to their high purity, low levels of iron and alkalines, and their coarse particle size, offering significant commercial advantages.
Investor response was positive, with Sigma shares rising by 7.6% to $13.94 apiece in New York by mid-day Monday, pushing the company’s market capitalization to an impressive $1.4 billion. This expansion is not only a testament to Sigma Lithium’s growth strategy but also underscores the increasing importance of lithium in powering the future of sustainable energy and transportation.
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