Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) announced it has received the first payment for its inaugural shipment under the Green Tailings Environmental Offtake agreement with Yahua International Investment and Development Co Ltd.
Yahua, one of the largest lithium chemical refiners for electric vehicles in the world, has committed to purchasing 100% of the company's Green Tailings for up to three years, marking a significant step forward in Sigma’s strategy to develop sustainable battery materials.
Vancouver-based Sigma is pioneering its 'Zero Tailings' environmental sustainability strategy, which has successfully eliminated the environmental impact of tailings, setting a new standard for eco-friendly lithium production.
Green Tailings are high-purity, zero chemicals, approximately 1.3% lithium oxide (Li2O), ultra-fine tailings produced at Sigma’s Greentech Lithium Processing Plant as a by-product. Green Lithium is high purity 5.5% battery grade sustainable lithium produced by the Greentech Plant.
The Green Tailings Environmental Offtake agreement with Yahua encompasses the sale of up to 300,000 tonnes of Green Tailings annually for up to three years. These tailings will be upcycled into battery-grade lithium concentrate, playing a crucial role in the production of electric vehicle batteries. Additionally, Sigma Lithium has entered into a spot sale agreement with Yahua for the sale of 15,000 tonnes of Green Lithium.
Yahua holds significant market influence and partnerships with industry leaders like LG Chem and LG Energy Solution.
Sigma also said it had received 50% prepayment ahead of the shipments with premium pricing, including Green Lithium at 9% of lithium hydroxide index and Green Tailings at 9% of lithium hydroxide index, with deductions for grade, processing and tolling costs.
In a statement, Ana Cabral-Gardner, CEO and co-chairperson of Sigma Lithium, commented: "Achieving Zero Tailings marks a major milestone for Sigma Lithium and for the battery materials industry, demonstrating that lithium battery materials can be produced in harmony with the environment and without hazardous tailings dams.”
Cabral-Gardner also highlighted the company's dedication to harmonizing lithium production with environmental preservation, enabling the development of a sustainable global supply chain to meet the growing demand for lithium in electric vehicles.
Sigma is currently producing Green Lithium from its Grota do Cirilo project in Brazil.
Phase 1 of the project is expected to produce 270,000 tonnes of Green Lithium annually. Phase 2 & 3 of the project are expected to increase production to 766,000 tonnes annually, pending results of an ongoing feasibility study.
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