Tesla Inc (NASDAQ:TSLA) has reportedly been weighing a takeover of battery metals miner Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML), according to a report published by Bloomberg.
People with knowledge of the matter told Bloomberg that amid rampant demand for the metal used in electric vehicle (EV) batteries, the car maker has been speaking with potential advisers about a bid.
Sigma Lithium, which is powering the next generation of EVs with environmentally sustainable and high-purity lithium, is one of multiple mining options Tesla is exploring, said the people quoted by Bloomberg, who asked not to be identified discussing confidential information.
READ: Sigma Lithium completes crucial step of commissioning its Greentech plant in Brazil
According to Bloomberg, Sigma Lithium’s biggest shareholder has been exploring a potential sale of the company and gauging interest from miners and carmakers. Its biggest investor, holding 46%, is A10 Investimentos, a Brazilian private equity fund that Sigma co-Chief Executive Officer Ana Cabral-Gardner helped establish. Co-CEO Calvyn Gardner also owns part of the miner.
“Deliberations are in the early stages and may not lead to a transaction,” according to the people in the know. Sigma’s owners could also wait to develop the company’s main project further before seeking an exit, added the report.
Vancouver-headquartered Sigma Lithium is currently commissioning its wholly owned Grota do Cirilo project in Brazil. The project is expected to produce 766,000 tons annually of battery-grade sustainable lithium concentrate in an advanced Greentech lithium plant that uses 100% renewable energy, recycled water and dry-stacked tailings.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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