Sigma Lithium (TSXV: SGML; NASDAQ: SGML) has begun building the manufacturing plant basis and infrastructure for its Grota do Cirilo lithium undertaking in Brazil, the most important exhausting rock lithium deposit within the Americas.
The Vancouver-based firm mentioned it’s on observe to start out lithium manufacturing within the fourth quarter of 2022, including it has the funds to fulfill the fairness funding necessities below its proposed building debt facility.
The corporate famous that Section 1 of the manufacturing plant has been designed to supply as much as 220,000 tonnes per 12 months of excessive purity 6% battery grade lithium focus, equal to about 33,000 tonnes per 12 months of lithium carbonate equal (LCE).
Sigma is at the moment conducting a preliminary feasibility examine for a potential second manufacturing part. Its preliminary financial evaluation for the second deposit on the Grota do Cirilo undertaking, released in June, doubles production capacity of battery-grade lithium focus to round 440,000 tonnes per 12 months (66,000 LCE).
Such capability, which could possibly be reached earlier than the top of 2023, would make Grota do Cirilo fall simply exterior the world’s high 5 lithium producers when it comes to output capability after Albemarle, SQM, Ganfeng, Pilbara Minerals and Galaxy.
The proposed mine could be powered by a hydroelectric undertaking positioned 50 km away from the location and serve what Sigma dubs the rising Atlantic provide chain for batteries and electrical automobiles manufactured in North America and Europe.
Sigma expects a bifurcation available in the market as progress exterior of China accelerates with environmental components together with water, power use and tailings turning into more and more necessary components within the provide chain and the way producers are assessed.
The corporate’s co-CEO, Ana Cabral-Gardner, believes that Brazil has the potential to turn out to be a “green lithium powerhouse.”
Brazil is already a worldwide case examine in low carbon mobility powering vehicles with ethanol, biofuels and pure gasoline. With Sigma Lithium within the combine, the nation now has one of many few firms globally that has confirmed its capability to supply lithium in an environmentally sustainable method.
Sigma has been producing environmentally sustainable battery-grade lithium focus on a pilot scale since 2018.
A bigger-scale industrial operation is deliberate with a capability for 220,000 tonnes (33,000 tonnes of LCE) a 12 months in Section I, rising to 440,000 tonnes (65,000 tonnes of LCE) in Section II.