Sigma Lithium Receives Preliminary Financing Approval from Development Bank of Brazil
Sigma Lithium, a dual-listed lithium producer, announced on Monday that it has received preliminary financing approval from the Development Bank of Brazil (BNDES) for its expansion project in Brazil. The approval will allow the company to nearly double its production capacity.
In a statement, Sigma Lithium revealed that it has received a letter of intention for a project credit line from BNDES to expand the Quintuple Zero Green Lithium Grota do Cirilo project in Vale do Jequitinhonha. The certification process, which included the filing of the final FEL3 cap expenditure for construction and engineering of the second Greentech plant totaling 492.4 million Brazilian reals ($100 million), has been completed.
With the addition of the second Greentech plant, Sigma Lithium aims to increase its daily production capacity of Quintuple Zero Green Lithium from its current 270,000 metric tons to approximately 510,000 metric tons. Construction on the plant is expected to begin in the first quarter of this year, following the end of the rainy season.
This financing approval from BNDES is a significant milestone for Sigma Lithium as it seeks to expand its lithium production capabilities. The company’s expansion plans align with the growing demand for lithium, a key component in electric vehicle batteries, as the global shift towards sustainable transportation continues to gain momentum.
Sigma Lithium is positioned to capitalize on the growing market for green lithium, and the additional funding from BNDES will allow the company to accelerate its expansion efforts. As the construction of the second Greentech plant commences, Sigma Lithium is poised to play a pivotal role in meeting the increasing global demand for lithium.
Analyst comment
Positive news: Sigma Lithium receives preliminary financing approval from the Development Bank of Brazil for its expansion project, allowing the company to double its production capacity. This aligns with the growing demand for lithium and positions Sigma Lithium to capitalize on the market for green lithium. The additional funding will accelerate its expansion efforts, making the company a key player in meeting global lithium demand.
