From Record Shipments To Full Production Capacity, Sigma Lithium Is Ending The Year With Reason To Cheer

Sigma Lithium Corp. SGML, the global lithium producer that says it is dedicated to powering the next generation of electric vehicles with carbon-neutral, socially and environmentally sustainable lithium concentrate, is having a busy end of year. The company recently announced a record shipment of 27,500 tons of its Quintuple Zero Green lithium and also that its production is at full capacity. 

At last check, Sigma Lithium said it was in the process of loading 27,500 tons of previously produced lithium onto a ship from the Port of Vitoria to IRH Global Trading LTD. in Abu Dhabi. The provisional price (6% Li2O, CIF China) for this shipment is set at 8.25% of the battery-grade lithium carbonate price quoted on the Guangzhou Futures Exchange (GFEX) as of the shipment date, reports Sigma.

Production At Full Capacity 

The green lithium producer said the shipment demonstrates its increased operational excellence and ability to meet operational and sales targets. The company credited improvements partially to the successful implementation of efficiency initiatives at its Greentech Industrial plant during its four-day maintenance shutdown in November. 

The enhanced production capabilities enabled Sigma Lithium to achieve continuous production of more than 850 tons per day of lithium oxide for several consecutive days, the company said. It reached a peak of 900 tons per day. As a result, the company said the annualized production run rate reached full capacity of 270,000 tons and it expects to maintain this annualized production level going forward. 

"Our ability to maintain a consistent monthly shipment cadence is a clear reflection of our operational excellence, and reliability as a mature producer. It also highlights the stability we have achieved in the use of our proprietary dense media separation technology to produce lithium oxide at our Greentech Industrial Plant," said Ana Cabral, CEO of Sigma Lithium. "We are delighted with our ongoing partnership with IRH in Abu Dhabi which enhances our commercial flexibility to effectively navigate lithium demand seasonality. This collaboration enables us to capitalize on every opportunity to maximize business performance and secure better lithium pricing, even in the current market environment." 

Record-Setting Quarter 

Prices for lithium globally have been declining in 2024 due to a reduction in electric vehicle shipments and more supply of lithium. However, Sigma Lithium seems to be managing this well as the company says it has experienced robust bid activity across its shipments year to date.  

For the third quarter, Sigma reported production of its Quintuple Zero Lithium Concentrate totaled 60,237 tons, up 22% from the second quarter and slightly higher than the 60,000 tons it forecast. During the quarter, the miner set several daily production records and experienced periods of sustained operations above 860 tons per day. 

For the fourth quarter, Sigma expects production of lithium concentrate to reach at least 60,000 tons. The company said that during the third quarter it maintained one of the lowest cash unit operating costs in the industry. The miner's cost, insurance and freight (CIF) in China averaged $513 per ton, down from $515 per ton in the second quarter.  

Plant Expansion Underway 

In addition to setting production and shipment records, Sigma Lithium is also progressing with its phase 2 Greentech Plant expansion. During the third quarter, Sigma initiated earthworks by completing the clearing of the terrain for arid and semi-arid vegetation suppression for the entire industrial project, including future phase 3 construction of the production plant. Total building and commissioning are expected to occur over a 12-month period, with budgeted capex for phase 2 of $90 million at current exchange rates. "With phase 1 now operating at full capacity, we are working relentlessly to replicate this industrial success as we move forward with the construction of our second Greentech Industrial Production Plant," said Cabral.

From enhancing its existing Greentech plant to expanding its new one, Sigma Lithium is hitting milestones as 2024 winds down, having achieved record shipments and full production capacity before the new year begins. With the company expecting more of the same in 2025, Sigma Lithium is working to demonstrate that even if lithium prices are down, it has the potential to thrive. 

Featured photo by Andrew Roberts on Unsplash.

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