Sigma Lithium (TSXV:SGML,NASDAQ:SGML) announced on Thursday (August 29) that a development loan of 487 million Brazilian reais will allow it to double the production capacity of its Grota do Cirilo lithium operation.
The National Brazilian Bank for Economic and Social Development has made a binding commitment to provide Sigma with the funds, which will allow the company to build a second Greentech carbon-neutral plant.
With the new plant, Sigma will be able to boost it annual output of Quintuple Zero Green Lithium from 270,000 metric tons to about 520,000 metric tons. ‘Quintuple Zero’ refers to the product’s five key environmental attributes: zero carbon emissions, zero use of potable water, zero hazardous chemicals, zero tailings dams and zero use of dirty power.
Located in Minas Gerais, Brazil, Grota do Cirilo is already considered one of the largest lithium operations in the world. Phase 1 operations began commercial production in the second quarter of 2023.
The expansion is expected to enhance the company’s ability to meet growing demand for lithium, particularly from the electric vehicle sector, while maintaining its alignment to global standards for sustainability.
The existing Greentech plant uses 100 percent renewable energy. Additionally, the company has implemented a dry stacking method for tailings management, eliminating the need for a tailings dam. Water used in the production process is sourced from sewage treatment to further reduce environmental impact.
Sigma was recognized at COP28 for its clean technology and environmental sustainability practises.
The expansion project, which was approved by the company’s board in April, is expected to be completed within a 12 month period, with commissioning scheduled for mid-2025. Construction activities have already been initiated.
Sigma recently reported its second quarter results, outlining revenues of US$45.92 million for the quarter, driven by the sale of 52,572 metric tons of Quintuple Zero Green Lithium.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
