Sigma Lithium Bolsters Production Capacity, Aims to Double Output by 2025

Sigma Lithium made a significant announcement on April 1st, 2024, revealing its plans to expand its lithium production capacity by installing a second production line at its Greentech industrial plant in Brazil. The objective is to nearly double its lithium output. This expansion initiative is part of Sigma's strategic vision to enhance its Grota do Cirilo project located in the Minas Gerais state, with the aim of boosting lithium production to 520,000 tonnes/year by 2025 from the current output of 270,000 tonnes.

According to the company, the capital expenditure for Phase 2 is estimated to be $100 million. Sigma anticipates commissioning the new plant by the end of the year, with the commencement of production slated for the first quarter of 2025. Sigma has obtained the necessary environmental license from the state government, enabling the installation and operation of the new plant. Additionally, in February, Sigma secured a letter of intention from the Development Bank of Brazil (BNDES) for additional funding for its Grota do Cirilo project. At present, Sigma holds the distinction of being the world’s sixth-largest global integrated producer of lithium concentrate.

In its inaugural calendar year of operations, Sigma's mine churned out over 105,000 tonnes of lithium concentrate. The first quarter of 2024 alone witnessed production totaling 52,800 tonnes. In terms of financial performance, Sigma reported full-year revenue of $135.1 million in 2023. As of the end of the fourth quarter, the miner boasted $48.5 million in cash and cash equivalents, representing an increase from the $28 million cash reserve it held at the close of the September quarter.

Commenting on the expansion initiative, Sigma's CEO Ana Cabral highlighted the surge in customer demand surpassing the quantities produced by Phase 1. She emphasized the premiumization of Sigma's lithium products owing to their superior quality attributes, including high purity, low levels of iron and alkalines, and coarse particle size.

Sigma Lithium, stands as a prominent global lithium producer, dedicated to fueling the future generation of electric vehicle batteries with carbon-neutral, socially and environmentally sustainable chemical-grade lithium concentrate. Positioned at the forefront of environmental and social sustainability within the EV battery materials supply chain, Sigma Lithium is currently operationalizing the production of Quintuple Zero Green Lithium concentrate at its Grota do Cirilo Project located in Brazil. Phase 1 of the project commenced commercial production in the second quarter of 2023, boasting an annual capacity of 270,000 tonnes of concentrate (equivalent to 36,700 LCE annually).