Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) announced a new 22,000-tonne shipment of Quintuple Zero Green Lithium to Glencore at the Port of Vitoria. The upcoming shipment is the seventh of its kind from the company’s Greentech industrial plant.
The plant is delivering on a monthly shipment cadence aligned with levels approaching headline capacity, according to the Brazil-focused producer.
Glencore has increased its prepayment for this shipment to 85% of its value and has enhanced payment terms to occur upon product delivery to the warehouse, Sigma noted.
The move marks a departure from previous agreements, where the company secured only 50% of the value upon loading. The prepayment reflects premium provisional pricing based on 7.5% of the lithium hydroxide price quoted at LME for Sigma Lithium's Quintuple Zero Green Lithium concentrate.
This shipment is part of a broader commercial distribution and marketing agreement between Sigma Lithium and Glencore, aimed at establishing a low-carbon, environmentally and socially sustainable global lithium supply chain for electric vehicles.
In a parallel development, Sigma Lithium has finalized trade finance credit lines totaling US$90 million with leading sustainability-oriented financial institutions.
The entirety of this $90mn remains available for use by Sigma. These credit lines, with an average annual interest rate of 11%, include contributions from Citibank (US$50 million), Santander (US$20 million), Banco do Brasil (US$10 million), and XP Inc (US$10 million).
Sigma’s latest trade finance credit line with Citibank, amounting to US$50 million, features a 180-day duration and a 9.3% total interest rate.
"Establishing a consistent shipping schedule, demonstrating our product quality, and low-cost resilience at the trough of this lithium cycle has opened these additional credit opportunities for Sigma Lithium,” CEO Ana Cabral-Gardner said in a statement.
Sigma Lithium's unique Quintuple Zero Green Lithium has garnered recognition as the most sustainable lithium globally. The lithium is characterized by its zero net carbon emissions, reliance on 100% renewable power at the Greentech Plant, utilization of 100% dry stacked tailings, sewage treatment for inbound water, and the absence of hazardous chemicals in the manufacturing process.