Sigma Lithium receives letter of arbitration from LG Energy Solution (updated)

Sigma Lithium

19/03/2024 22:23

(Adds details on arbitration, background and shares in
paragraphs 2-5)
       March 19 (Reuters) - Sigma Lithium  SGML.V  said on
Tuesday its unit received an initiation letter of arbitration
from South Korean company LG Energy Solution  373220.KS .
    In its request for arbitration, LG Energy alleges that Sigma
Lithium is in breach of certain provisions in connection to a
lithium supply agreement entered in 2021. 
        "The claims are completely without merit and intends to
defend its interests vigorously," Sigma 
    said
     in a statement.
  
        U.S.-listed shares of Sigma were down 1.6% at $12.35 in
extended trade.
  
        In 2021, Sigma and LG Energy had entered into a six-year
offtake agreement for battery grade sustainable lithium
concentrate scales from 60,000 tons per year in 2023 to 100,000
tons per year from 2024 to 2027.
  

 (Reporting by Kabir Dweit and Arunima Kumar in Bengaluru;
Editing by Alan Barona)
 ((Kabir.Dweit@thomsonreuters.com;))