Sigma Lithium inks supply deal with Glencore with shipment prepared

Sigma Lithium (TSXV: SGML; NASDAQ) announced on Thursday it has prepared 22,500 tonnes of battery-grade lithium that will be shipped to Glencore as part of a collaboration to build a sustainable supply chain for electric vehicles.

Sigma will receive a 50% prepayment from Glencore in advance of shipment at a 9% premium to the average price of the metal in China, Japan and South Korea.

"We are delighted to partner with Sigma Lithium, as we continue to offer our customers responsibly produced, low carbon lithium," said Robin Francois, a lithium trader at Glencore. "This partnership also underpins our ambition to become a partner of choice for the provision of such a critical mineral to the battery and EV industry, thereby supporting the energy transition."

"Given the critical role of EVs in reducing the carbon footprint of the transportation sector, Glencore and Sigma Lithium's joint efforts are fully aligned with our clients' approach to responsible sourcing and supply chains built in line with the ethos of the consumer of the EV," Ana Cabral, Sigma's CEO and co-chair, added.

Sigma's lithium products are sourced from its state-of-the-art Greentech plant at the Grota do Cirilo project in Brazil, which started production in April and is the first lithium operation to do so without a tailings dam.

As the Greentech plant also utilizes 100% clean renewable energy and sewage water for recirculation, and uses no hazardous chemical products, the final products are labelled as "Triple Zero Green Lithium". The lithium has a consistently high grade of 5.5% lithium oxide and a high purity.

The Grota do Cirilo mine is expected to produce 130,000 tonnes of Triple Zero Green Lithium by the end of this year. Roughly a fourth of that will go to Korea's LG Energy Solution, with the rest slated for sale on the spot market.

Earlier this month, the Vancouver-based lithium developer said it will unveil plans for further expansions that would lift production by up to approximately 100,000 tonnes annually.

THIS ARTICLE WAS ORIGINALLY POSTED ON MINING.COM