#Brazil #São Paulo #electric vehicles #Sigma Lithium #Lithium Production

Exciting Developments from Sigma Lithium

Sigma Lithium Corporation, a preeminent name in the lithium production sector, has recently updated its stakeholders on notable advancements concerning its capacity expansion. The company is diligently working on the construction of a second Greentech industrial plant aimed at doubling its output of lithium oxide concentrate, which is critical for the electric vehicle (EV) market.

Commitment to Sustainable Practices

Dedicated to supplying carbon-neutral and environmentally sustainable lithium, Sigma Lithium is at the forefront of the green mining movement. The company's CEO, Ana Cabral, who will be presenting at the BMO Global Metals, Mining, and Critical Minerals Conference, emphasizes their commitment to sustainable practices. The presentation will unveil the firm's expected financial outlook for the fourth quarter of 2024 and anticipated production volumes for 2025-2026.

Financial Expectations for FY2024 and Beyond

As part of their recent announcement, Sigma outlined various financial metrics. For Q4 2024, the company projects a production volume of 77,000 tonnes with an operating cash cost of $318 per tonne at the plant gate, climbing to higher costs for shipping and distribution to China. The overall financial landscape for FY 2024 anticipates underlying revenues of $181 million with a cash gross margin expected to be 41%.

Looking ahead to 2025 and 2026, production forecasts indicate a gradual increase. For 2025, Sigma expects to produce 300,000 tonnes, which is set to rise to 520,000 tonnes by 2026 as the new plant comes online.

Expansion Progress and Workforce Initiatives

As construction progresses, Sigma Lithium highlights impressive milestones including the completion of 100% of foundation earthworks for the new plant. The company remains on schedule and is efficiently managing costs through existing infrastructures, which allows for rapid scaling of operations. Over 100 personnel are already engaged in this expansion project, with plans to ramp this number up to 1,000 at the peak of construction.

Additionally, Sigma is taking steps to nurture local talent by establishing a training center aimed at equipping community members with skills in heavy machinery operation. This initiative is aligned with the company's broader goal of creating jobs and opportunities in the regions it operates.

Financial Backing and Market Position

To facilitate this expansion, Sigma has secured a considerable line of credit from BNDES, amounting to $100 million. This financial bolster allows the company to proceed confidently, even amidst fluctuations in the lithium market.

As one of the world’s lowest-cost lithium producers, Sigma Lithium is poised to capitalize on economies of scale, thereby reducing its average production costs over time. The anticipated rise in lithium demand, fueled by the rapid growth in electric vehicle production, places Sigma in a strategic position to respond and thrive in the coming years.

Conclusion

As the EV market continues to surge, Sigma Lithium’s commitment to sustainable practices and significant capacity expansion will make it a formidable player in the lithium supply chain. With clear financial guidance and operational milestones, the company aims not just to meet current demands but also to carve out a substantial role in the future landscape of energy solutions. For more details on Sigma Lithium's initiatives and updates, visit Sigma Lithium’s official website.