Sigma Lithium signs supply deal with Glencore

Sigma Lithium

21/09/2023 15:41

Sept 21 (Reuters) - Miner Sigma Lithium  SGML.V 
 SGML.O  said on Thursday it would supply more than 20,000
tonnes of the mineral to commodity trader Glencore  GLEN.L  amid
rising demand for the key element used in electric vehicle
batteries.
    The Vancouver-based miner said it would ship the 22,500
tonnes of lithium to Glencore from the Vitoria port in Brazil
this week as part of a collaboration with the Swiss firm.
    Sigma, which is exploring strategic alternatives including a
potential sale of the company, said it would receive half of the
prepayment in advance of shipment at a 9% premium to the average
price of the metal in China, Japan and South Korea.
    The lithium would be sourced from Sigma's Greentech lithium
plant at its Grota do Cirilo Project in Brazil. 
    The company had started production at the Grota do Cirilo
project earlier this year to supply roughly a fourth of its
output to LG Energy Solution  373220.KS , with the rest slated
for sale on the spot market.

 (Reporting by Sourasis Bose in Bengaluru; Editing by Shilpi
Majumdar)
 ((Sourasis.Bose@thomsonreuters.com;))