Sigma Lithium Begins Green Lithium Production
Sigma Lithium Corporation (NASDAQ:SGML) has successfully transitioned from a developer to a producer with the commencement of battery-grade sustainable lithium concentrate, also known as Green Lithium, production at its Grota do Cirilo project in Brazil. The company has achieved this significant milestone on schedule and safely, by completing the commissioning of the Dense Medium Separation (DMS) circuit, marking the finalization of Phase 1 construction.
First Shipment and Production Capacity
Sigma Lithium anticipates that the first shipment of Green Lithium will be approximately 15,000 tonnes, targeted for May 2023. The company expects the Greentech Plant to reach its full production capacity by July 2023, with an annual production rate of 270,000 tonnes of spodumene concentrate.
Commercial Interest and Premium Specifications
The company has generated significant commercial interest in its Green Lithium production and intends to sell 100% of its ultrafine tailings. The Green Lithium is expected to meet the premium specifications set by advanced battery producers, with a concentrate calibrated to lithium industry standard of 5.5% Li2O, a coarse lithium concentrate particle size of 0.5mm to 9.5mm, and high purity levels.
Supply Agreements and Market Prospects
In 2021, Sigma agreed to supply at least 60,000 tonnes of Green Lithium to LG Energy Solution Ltd, starting in 2023. The remaining output is expected to be sold on the spot market, with customers likely to process the metal in China. There have been rumors that Tesla Inc. and Chinese lithium rival Ganfeng Lithium Group Co. may consider making a bid for Sigma, but the company’s CEO, Ana Cabral-Gardner, has not commented on any takeover discussions.
A Milestone for Sustainability in Lithium Extraction
Reaching this milestone demonstrates Sigma Lithium’s commitment to environmentally and socially responsible lithium extraction. The company has been working for nearly a decade to develop a sustainable extraction process and is now ready to deliver on its production targets for its stakeholders and partners.