One of the largest producers of lithium in the world is about to ramp up their operations. And they are doing with the support of a Brazilian bank.
What’s happening:
- Lithium producer Sigma Lithium (NYSE: SGML) has landed a binding commitment from the National Brazilian Bank For Economic and Social Development for a loan of approximately $87M USD to fund the construction and development of a new lithium production plant located in Brazil
Why it matters:
- Sigma Lithium is amongst the world’s largest producers of lithium and has also been successfully producing lithium in Brazil that is compromised of zero carbon dioxide emissions, zero dirty power and zero toxic chemicals
By the numbers:
- The loan from the National Brazilian Bank For Economic and Social Development will fund nearly 99% of all the expected costs of construction and development
- Once the new lithium production plant is fully operational, Sigma Lithium anticipates that it will expand their production capabilities from 270,000 tonnes of lithium to 520,000 tonnes annually
Going deeper:
- Finding government funding to support lithium projects has been on the rise recently, with Lithium Americas (NYSE: LAC) previously landing a multi billion dollar loan from the United States Department of Energy to advance their lithium production facilities located in Nevada and E3 Lithium (TSXV: ETL) recently being granted fresh funding from the Canadian government to accelerate the development of their Alberta based facility which is aiming to turn naturally available lithium brine into battery grade lithium carbonate
