SIGMA Lithium Corporation a leading global lithium producer dedicated to powering the next generation of electric vehicles with environmentally sustainable and carbon neutral battery-grade lithium, announced that it has successfully achieved net zero carbon emissions with the successful execution of its first shipment of Triple Zero Green Lithium and Triple Zero Green By-Products.
Sigma Lithium has begun generating revenue from Phase 1 and expects to produce approximately 130,000 tonnes of Triple Zero Green Lithium in calendar year 2023 as it ramps up to full-scale Phase 1 production. The Company expects to reach Phase 2 & 3 full production capacity in 2024, positioning it as one of the world's largest lithium producers.
Ramp-up of Phase 1 production continues to advance, currently operating at approximately 75% of nameplate throughput capacity. Importantly, Sigma Lithium has achieved maximum DMS recoveries of 60% and is tracking towards design recoveries of 65% while also achieving expected high-quality technical specifications and purity for the Company's Triple Zero Green Lithium, even achieving recent production of up to 6.4% Li2O lithium concentrate.
Maiden Shipment of Triple Zero Green Lithium and By-Products
The maiden shipment consists of 15,000 tonnes of Triple Zero Green Lithium and 15,000 tonnes of Triple Zero Green By-Products produced from its Grota do Cirilo project in Brazil. This first shipment was produced at Sigma Lithium's state-of-the-art Greentech Plant, the first lithium project in the world without a tailings dam. With 100% dry-stacked tailings and the absence of hazardous chemical products for processing lithium, the Company is preventing water and soil contamination and contributing to the preservation of rivers and forests in the region.
Further, due to the low carbon content of Sigma Lithium's products, the Company's carbon footprint after carbon abatement initiatives and implementation of environmentally sustainable production methods was offset with 59,000 tonnes of carbon credits purchased from Carbonext (which are verified through Verra Verified Carbon Standard) resulting in the Company reaching net zero this year.
"We are thrilled with our partnership with Sigma Lithium," said Carbonext CEO, Janaína Dallan. "Ana Cabral is notoriously committed to the Company's environmental and socioeconomic agenda and we would like to congratulate Sigma for engaging in the fight against climate change with Carbonext. Projects like the ones Sigma is supporting protect more than 2 million hectares in the Amazon biome with support for constant local and satellite monitoring to ensure high integrity and quality of forest preservation projects and socio-environmental benefits to local communities."
As a result, Sigma Lithium is able to deliver the world's first Triple Zero shipment of battery-grade lithium concentrate with zero hazardous chemicals, zero tailings and net zero carbon.
"We were founded with the mission to produce environmentally sustainable lithium with the lowest possible greenhouse gas emissions and the elimination of hazardous tailings dams," said Ana Cabral, Sigma Lithium CEO and Co-Chairperson. "With the successful execution of our first shipment, we celebrate the accomplishment of our mission: we were able to reach our net zero target well in advance of our estimated timeframe, and ahead of the overall metals and mining sector. More importantly, as we reached our climate action goals, we are well on the way to lift the communities around us with initiatives such as microcredit and irrigation for subsistence farmers."
"At Sigma Lithium, we believe that businesses have a critical role to play in combating climate change, particularly in the mass transition to electric vehicles. Our state-of-the-art Greentech Plant, which uses 100% renewable energy, 100% recycled water and 100% dry-stacked tailings, is a model of sustainability to fully support the electric vehicle industry in reducing its environmental footprint. By successfully achieving net zero carbon production, we have proven that our industry can effectively embrace sustainable practices and pave the way towards a greener future," she added.
Premium Product with Premium Pricing
This shipment is the first installment of the previously announced Green By-Products Environmental Offtake agreement signed on May 3, 2023, with Yahua International Investment and Development Co., Ltd. ("Yahua") for the sale of up to 300,000 tonnes of Green By-Products per year for up to three years. In addition, the Company concurrently entered into a spot sale agreement with Yahua for the sale of 15,000 tonnes of Triple Zero Green Lithium which is also included in the first shipment.
Due to the high-purity nature of its Triple Zero Green Lithium and By-Products, Sigma Lithium was able to achieve premium pricing, calculated using 9% of the average lithium hydroxide price for China, Japan and South Korea. The resulting prices for the maiden shipment, FOB Vitoria Brazil, are ~US$3,500/t of concentrate (adjusted one month post shipment) and ~US$350/t of by-product (adjusted two months post shipment).
Of note, the per tonne price of Triple Zero Green By-Products obtained by Sigma Lithium more than offsets the FOB site gate cash cost estimate of US$289 per tonne of Triple Zero Green Lithium estimated in the Company's Updated Technical Report which was issued June 12, 2023. 100% of the Triple Zero Green By-Products are expected to be upcycled into battery grade lithium concentrate for use in electric vehicle battery production.
ABOUT SIGMA LITHIUM
Sigma Lithium is a leading global lithium producer dedicated to powering the next generation of electric vehicle batteries with environmentally sustainable and high-purity lithium.
Sigma Lithium has been at the forefront of environmental and social sustainability in the EV battery materials supply chain for six years and it is currently producing Triple Zero Green Lithium from its Grota do Cirilo Project in Brazil. Phase 1 of the project is expected to produce 270,000 tonnes of Triple Zero Green Lithium annually (36,700 LCE annually). If it is determined to proceed after completion of an ongoing feasibility study, Phase 2 & 3 of the project are expected to increase production to 766,000 tonnes annually (or 104,200 LCE annually). The project produces Triple Zero Green Lithium in its state-of-the-art Greentech lithium plant that uses 100% renewable energy, 100% recycled water and 100% dry-stacked tailings.