Sigma Lithium in talks to supply lithium to Tesla and other automakers

 	
The company held a meeting with Ganfeng Lithium, supplier of Tesla, at the request of automobile firm.
 	
Sigma, which will be among the lowest-cost lithium suppliers in the world, is also having informal talks with German automobile firms BMW and Volkswagen.

Sigma Lithium Resources Corp, a mineral exploration firm aimed at the development and acquisition of various lithium projects, in presently in talks with electric vehicle giant Tesla and other big automakers in order to supply the essential battery ingredient to companies in the future.

Calvyn Gardner, Chief Executive of Sigma stated that the company, which received its license to start hard rock mining for lithium in Minas Gerais, Brazil recently, held a meeting with Ganfeng Lithium, supplier of Tesla, at the request of automobile firm. However, it chose to hold off on making a deal due to the terms demanded by Chinese company.

Gardner added that there are a set of other things the Chinese company needs apart from prices. However, these demands, which are slightly more complicated, would, in a way, restrict Sigma to supplying its lithium almost entirely into China.

Although lithium rates have dropped since 2018, Sigma and other lithium producers expect to greatly benefit from the long-anticipated electric car production boom when vehicle prices would be more competitive.

Sigma, which will be one of the lowest-cost mineral suppliers of the world, is also having informal talks with German automobile firms BMW and Volkswagen.

Recently in April, Sigma made an alliance with Japanese energy firm Mitsui, which involved $30 million in investment for the company’s planned commercial production facility. Mitsui will receive a rough estimate of a third of the initial planned yield of the mine; approximately 220,000 tons.

Calvyn added that Sigma would prefer to supply lithium to Tesla directly in California, however than can only come to fruition once manufacturers of cathode, a primary battery component, establish their businesses in the U.S.

Sigma’s deal with Mitsui would bring it closer to automobile companies given Mitsui's existing partnerships with battery makers in Asia.

Source credit: https://money.usnews.com/investing/news/articles/2019-09-12/brazilian-lithium-producer-sigma-in-talks-with-tesla-other-automakers