Key Takeaways:
(Bloomberg) -- Sigma Lithium Corp. shares rose after the company announced it signed a US$100 million bank guarantee with a major Brazilian bank, paving the way to double its production of the key battery metal. The deal, announced on April 2, 2026, is a crucial step in financing the construction of its second Greentech industrial plant.
"This is a key milestone for the Company to execute its growth plans in 2026," the company said in a statement. The financing is fully collateralized by a blend of guarantees and receivables from Sigma's own clients, which de-risks the expansion project significantly.
The new funding will be used to expand the company's Greentech plant, boosting its annual production capacity from 270,000 tonnes of lithium concentrate to 520,000 tonnes. This increase will solidify Sigma's position as a major global supplier of lithium, a critical component for electric vehicle batteries. The company's existing operations are located in Brazil's "Lithium Valley."
Successfully doubling production will significantly boost Sigma Lithium's revenue and market share. The expansion comes as demand for lithium continues to be driven by the global shift to electric vehicles. This project's success will likely have a positive impact on its stock price, which trades on the Nasdaq under the ticker SGML.
This article is for informational purposes only and does not constitute investment advice.
