The mining operations have the potential to deliver battery-grade lithium for 13 years once it is built, according to Sigma Lithium Corp., which has valued its undeveloped project in Brazil at $5.1 billion.
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The project, known as Grota do Cirilo, is expected to produce 531,000 metric tons of lithium per year from two deposits, the company said in a Thursday statement. Sigma Lithium, which has a market value of C $1.97 billion $1.5 billion, is building the project in phases, with the initial mine already under construction. An April feasibility study predicted an eight-year operating life for the first phase, which it valued at $1.6 billion.
Sigma Lithium shares went up nearly 15% in Toronto and were trading 13% higher at C $22.15 as of 11: 37 a.m. local time. The stock has gone up about 70% this year.
Ana Cabral-Gardner, the co-chief executive officer of the Vancouver-based firm, said that the gain is done by adding a second production line. The combination will give the firm the potential to be one of the lowest cost operations for battery-grade lithium in the world.
Sigma Lithium said that the phased expansion of its integrated project in Brazil's Minas Gerais state could potentially make the company the world's fourth largest lithium producer. As countries push to electrify their economies and automakers increasingly turn to electric vehicles, the price of lithium has gone up as a key metal used in batteries.
The world needs lithium supplies to grow fivefold by the end of the decade to meet projected demand, according to BloombergNEF. BlackRock Inc.'s managed funds are among the investors of Sigma Lithium.
According to Cabral-Gardner, a former investment banker at Goldman Sachs Group Inc. and Barclays Plc., Sigma is in talks with Societete Generale SA to increase the size of its project financing initially signed in 2020.
She said in an interview from Brasilia that it has been a significant improvement in our risk profile. We can increase the size of the project financing. None of the Tech Rout Isn't Just Cyclical — It s Well-Earned and Overdue.
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