As part of a collaboration, Sigma Lithium Corporation (NASDAQ: SGML, BVMF: S2GM34, TSXV: SGML) will send over 20,000 tonnes of lithium to Glencore PLC (LON: GLEN) (JSE: GLN) this week.
On Thursday, the company announced the shipping of 22,500 tonnes of lithium to the Swiss giant miner from its Vitoria port in Brazil.
Under the agreement, Sigma Lithium will receive 50 per cent prepayment in advance of shipment at a provisional lithium pricing of 9 per cent of the price of lithium hydroxide price at LME (average among China, Japan, South Korea).
The company gave updates on its Greentech plant ramp-up which continues to progress and is on target to produce 130,000 tonnes of Triple Zero Green Lithium in 2023. The plant produces the company’s “green” lithium with more than 5.5 per cent lithium oxide and high purity.
Sigma Lithium CEO Ana Cabral said the companies are building an EV supply chain that is focused on providing lithium materials that are responsibly sourced in an environmentally and socially sustainable manner.
“Given the critical role of EVs in reducing the carbon footprint of the transportation sector, Glencore and Sigma Lithium’s joint efforts are fully aligned with our clients’ approach to responsible sourcing and supply chains built in line with the ethos of the consumer of the EV,” Cabral said.
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Sigma Lithium focuses on “green” lithium and its Triple Zero Green Lithium which uses only renewable energy, recycled water and dry-stacked tailings. Its lithium plant is the first project without a tailings dam and uses dense medium separation which does not use dangerous chemicals for the environment.
The company’s carbon footprint was offset with carbon credits purchased from Carbonext which are verified through Verra Verified Carbon Standard, making the shipment carbon neutral.
“We are delighted to partner with Sigma Lithium, as we continue to offer our customers responsibly produced, low carbon lithium,” said Robin Francois, Lithium Trader at Glencore.
“This partnership also underpins our ambition to become a partner of choice for the provision of such a critical mineral to the battery and EV industry, thereby supporting the energy transition.”
Sigma Lithium stock dropped slightly by 1.5 per cent on Thursday to $48.41 on the Canadian Venture Exchange.
