Sigma Lithium set to double production capacity in Q4

Sigma Lithium (TSXV, NASDAQ: SGML) is on track to double its production capacity in 2025, anticipating the commissioning of a second lithium beneficiation plant in Minas Gerais, Brazil, in the fourth quarter.

The producer confirmed on Monday that the construction of the second stage plant is staying on schedule and within budget. To date, all of the foundation earthworks have been completed, as well as the procurement of key equipment, which are expected to be delivered mid-2025.

“As one of the world’s lowest-cost producers, Sigma Lithium is well-positioned to leverage economies of scale as we expand our capacity,” the company said in a release, adding that this will further enhance its cost efficiency.

The plant construction is being fully funded by the US$100 million loan obtained from the Development Bank of Brazil last year. With the loan, Sigma said it decided to continue advancing the build despite the current lithium cycle because of the low capital expenditure intensity offered by the existing infrastructure.

Once commissioned, the new plant would allow Sigma to expand its annual production of carbon-neutral lithium concentrates to about 520,000 tonnes from the current 270,000 tonnes, starting in 2026. For 2025, it will add about 30,000 tonnes of production, taking the annual production to 300,000 tonnes at a cash cost of US$500 per tonne.

Last year, the company achieved 240,000 tonnes of production after surpassing its fourth-quarter production target.

Sigma shares were down 1.6% to $16.18 apiece on Monday at mid-day in Toronto, giving the company a market capitalization of $1.8 billion. Its shares traded in a 52-week range of $11.85 to $25.71.