Sigma Lithium commissions the first lithium plant in Brazil

Sigma Lithium Corp. has started a lithium production facility at its Brazil project, a key step in kicking off the first facility of its nature in the country.

The company expects to start commercial production from the Greentech plant in April at the Grota do Cirilo hard rock lithium ore project. It expects to start generating free cash flow in the second quarter of next year by producing battery-grade lithium concentrate.

“It’s huge because of the current shortage of supply at the lower end of the cost curve,” co-CEO Ana Cabral Gardner said in an interview.

Lithium is an essential component of electric vehicle batteries. The worldwide shift away from fossil fuels has skyrocketed demand for electric vehicles, leading to a shortage of battery materials and a gold rush to ensure global supply.

The company said in early December that it is considering nearly tripling lithium production at the project by 2024, after a study revealed that mineral reserves are 63% higher than previously thought.

With information from Bloomberg Línea

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