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Sigma Lithium Shipping 22,000T To Abu Dhabi’s Irh In Commercial Alliance For Sustainably And Ethically Produced Lithium Materials; Surpasses 3Q 2024 Production Target Of 60,000T

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Sigma Lithium Shipping 22,000T To Abu Dhabi’s Irh In Commercial Alliance For Sustainably And Ethically Produced Lithium Materials; Surpasses 3Q 2024 Production Target Of 60,000T

  • The Company announces that it is shipping 22,000 tonnes of Quintuple Zero Green Lithium to International Resources Holding (IRH), the official trading company established by the Abu Dhabi Emirate.
    • This represents Sigma’s first transaction with IRH, broadening its commercial strategy of encompassing partners with strong balance sheets.
    • Provisional price for this shipment is set at 8.25% of the price of battery grade lithium carbonate quoted at GFEX at shipment date.
  • This shipment demonstrates a shared commitment of Sigma Lithium and IRH to create a low cost, resilient global supply chain built upon the foundation of delivering lithium materials that enable traceability and ethical sourcing of lithium chemicals.
  • Sigma Lithium continues to deliver operational excellence with 60,237t of Quintuple Zero Green Lithium produced in 3Q, representing an increase of 22% from 2Q and surpassing our 60,000t guidance.
    • Greentech Plant production reached daily records of >860t for extended periods during 3Q
    • The increased production levels demonstrate the perfect suitability of dense medium separation technology for the lithium industrial processing and beneficiation at Sigma’s Grota do Cirilo operations.
  • Combined, the improved production and consistent shipment patterns drive Sigma’s flexibility in establishing new commercial alliances, enabling the execution of the Company’s strategy to diversify sales across different geographies and clients.
    • The Company’s commercial success is furthered by the superior metallurgical properties and associated value-in-use of its Quintuple Zero Green Lithium, which enables cost savings for refineries.
  • Sigma Lithium’s commercial strategy is to create alliances, encompassing multi-industry platforms, to build a global, geoeconomically neutral, supply chain of lithium materials that are ethically produced, low carbon, environmentally and socially sustainable: in line with the ethos of environmentally and socially conscious consumers of electric vehicles.

SÃO PAULO, Brazil, Oct. 23, 2024 /PRNewswire/ — Sigma Lithium Corporation (“Sigma Lithium” or the “Company”) (NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML), a leading global lithium producer dedicated to powering the next generation of electric vehicles with carbon neutral, socially and environmentally sustainable lithium concentrate, announces the shipment of 22,000t of Quintuple Zero Green Lithium to Abu Dhabi’s IRH, maintaining its consistent operational cadence with near-monthly shipments. This represents Sigma’s first transaction with IRH, broadening its commercial strategy with partners with strong balance sheets. This shipment demonstrates a shared commitment of Sigma Lithium and IRH to create a low cost, resilient global supply chain of lithium materials built upon a foundation of traceability and ethical sourcing of lithium chemicals.

On September 30, 2024, Sigma concluded an export sale at its Victoria Port warehouse for 9,000t of Quintuple Zero Green Lithium concentrate with the additional 13,000t balance of the total 22,000t shipment to IRH booked in the fourth quarter.

The value of the Quintuple Zero Green Lithium for this 13th shipment is initially set at a provisional floating price equivalent to 8.25% of battery grade lithium carbonate quoted at the Guangzhou Futures Exchange (GFEX).  

The achievement of a near-monthly shipment cadence increases the commercial flexibility of the Company, allowing it to further its diversification strategy, and help global battery supply chains decarbonize.

All in, production of Quintuple Zero Green Lithium concentrate for the third quarter totaled 60,237t, surpassing the Company’s 60,000t target. This includes numerous daily production records and periods of sustained operations above 860t per day. The performance represents a 22% increase from 2Q24 levels and demonstrates the Company’s ability to achieve sustained production levels at annualized design capacity of 270,000t of lithium concentrate.

CEO and Co-Chairperson Ana Cabral notes:

We are delighted to begin a commercial alliance with Abu Dhabi’s IRH, marking our collaboration to build a supply chain of lithium materials that are ethically produced, low carbon, environmentally and socially sustainable.

This alliance will offer a resilient supply of lithium materials that are an alternative to the prevailing opaque sourcing of lithium chemicals, which determine lithium pricing in the industry irrespectively of traceability.

IRH is a leading participant in metals trading, backed by Abu Dhabi’s strong balance sheet. The relationship with IRH is evidence of a growing focus on battery metals by Abu Dhabi more broadly. As we continue to broaden our commercial alliances, Sigma Lithium is creating a more resilient commercial operation focused on offering metallurgically unique and ethically sourced lithium materials: which should deliver superior price realizations over time.”

She concluded,

We are also very pleased with our increased operational performance, which delivered on production targets for the third quarter and continues the same stride into the fourth quarter. We remain on track to deliver on our brownfield investments, while executing the strategic initiatives laid out at our recent investor day,

Qualified Persons Disclaim
Other disclosures in this news release of a scientific or technical nature at the Grota do Cirilo Project have been reviewed and approved by Iran Zan AusimM (Membership number FAusIMM (329132)), who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Zan is not considered independent under NI 43-101 as he is Sigma Lithium co-Head of Geology and co-General Manager of Sigma Lithium. Mr. Zan has verified the technical data disclosed in this news release not related to the current Mineral Resource estimate disclosed herein.

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Sigma Lithium Shipping 22,000T To Abu Dhabi’s Irh In Commercial Alliance For Sustainably And Ethically Produced Lithium Materials; Surpasses 3Q 2024 Production Target Of 60,000T, source

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