Ningde Times’ Back-up Plan

For instance, CATL has also introduced new pricing agreements with its automotive partners: part of the battery procurement by automakers is priced based on a lithium carbonate benchmark of RMB 200,000 per ton, while the remainder is priced at prevailing market rates—where domestic battery-grade lithium carbonate was then quoted at RMB 480,000 per ton. However, acceptance of this concessionary agreement comes with conditions: automakers must commit to sourcing no less than 80% of their battery requirements from CATL over three years and pay a certain proportion of the contract value as an advance. Back when He Xiaopeng personally camped out at CATL’s factory to secure battery supplies, automakers would have rushed to sign such contracts without hesitation. But today’s landscape—encompassing terms, environment, and strategic dynamics—has shifted dramatically. CATL is no longer the undisputed ‘King of Power Batteries’ it once was. Multiple automakers have established in-house battery companies, and other battery suppliers have also secured significant OEM partnerships. Although CATL still commands numerous collaborators, its recent controversial moves have unsettled partners and even spooked capital markets—making CATL, for a time, a company many prefer to avoid. Breaking this impasse has thus become CATL’s most urgent priority. 2. Seeking Opportunities Abroad The first development that warrants serious concern is CATL’s move to acquire lithium resources in Brazil. The Brazilian lithium project is indeed highly attractive. Named Grota do Cirilo, this spodumene project ranks as the largest and highest-grade hard-rock lithium deposit in the Americas, with total resources estimated at approximately 3.032 million tons LCE (1.45% Li₂O). According to plan, the Grota do Cirilo spodumene project commenced trial operations in December 2022. Phase I is expected to produce 270,000 tons annually of high-purity, battery-grade lithium concentrate—equivalent to roughly 36,700 tons LCE per year. Moreover, based on updated mineral reserve studies, Sigma Lithium estimates the project could yield 768,000 tons of lithium concentrate (104,000 tons LCE) between Years 2 and 8 of operation. Sigma Lithium—a company operating lithium mining assets in the Jequitinhonha Valley of Minas Gerais, Brazil—focuses primarily on the Grota do Cirilo project. On December 18, 2023, it announced that negotiations regarding the sale of its business had entered the final stage. The transaction was originally expected to close before year-end, but the Board now anticipates completion in 2024. According to an investigation by Exame IN, two consortia are currently in the final stages of acquisition talks. CATL—the Chinese battery giant—and Volkswagen AG—the German automaker—are viewed as the most likely buyers. Tesla reportedly attempted to engage the company earlier, but those discussions did not progress. As of now, Sigma Lithium’s valuation on the Canadian Securities Exchange stands slightly above USD 3 billion; however, amid falling lithium prices, its share price has declined 15% year-to-date. This situation places considerable pressure on Zeng Yuqun’s judgment and composure. On one hand, he must rigorously assess the resource advantages—and long-term strategic value—of this lithium asset. On the other, he must anticipate Volkswagen’s bidding strategy and establish a psychological ceiling price accordingly. Thus, for Zeng Yuqun—who has long grappled with domestic market-cap pressures—this moment may well call for checking into a hotel, just to rest his feet—and his mind.

The Battle for Brazil’s Lithium Mines: BYD Directly Challenges ‘The King of Batteries’?

Bloomberg previously reported that although Rio Tinto is actively seeking lithium-company acquisition targets, it has shown no interest in Sigma Lithium—citing excessively high asking prices. Likewise, Singapore’s sovereign wealth fund reportedly suspended negotiations due to pricing disagreements. Nonetheless, backed by the immense potential of the Grota do Cirilo lithium deposit, Sigma Lithium clearly possesses strong bargaining power. Located in Brazil’s so-called ‘Lithium Valley,’ the Grota do Cirilo spodumene mine holds measured + indicated resources totaling 85.6 million tons and inferred resources of 8.6 million tons, with an average lithium oxide grade of approximately 1.43%. Exploration of the Grota do Cirilo lithium deposit began in 2012. Transforming it into a ‘Green Lithium Valley’ is Sigma Lithium’s stated mission—and over the past decade, the company has invested more than BRL 2.3 billion in Brazil. ‘Triple-Zero Green Lithium’ is Sigma Lithium’s signature product. The company claims its processing plant runs entirely on green energy, uses 100% recycled water, and employs dry-stack tailings—making the Grota do Cirilo project the world’s first lithium operation without a tailings dam. According to Sigma Lithium, the project is planned in three phases. Phase I commenced production in 2023 from the Xusha ore body, with a designed annual capacity of 270,000 tons. In the first three quarters of 2023, Sigma Lithium produced 45,200 tons of lithium concentrate. In Q3 alone, it sold 38,000 tons of Triple-Zero Green Lithium Concentrate and 16,500 tons of lithium-based green by-products, achieving an average lithium concentrate price of USD 2,488 per ton. Next, following completion of feasibility studies, Sigma Lithium will expand into Phases II and III by developing nearby Barreiro and NDC ore bodies, raising design capacity to 766,000 tons. Upon full commercial operation, Sigma Lithium expects to rank among the world’s top five lithium producers. The Grota do Cirilo deposit holds enormous potential: in November 2023, Sigma Lithium announced it may revise its estimated resource base upward to over 110 million tons—representing a 25% increase over prior estimates. Consequently, the company plans to extend exploration potential for Phase IV to 26–30 million tons, with the ore body continuing eastward. Additionally, Sigma Lithium has identified extra pegmatite deposits, which could yield up to 20 million tons of incremental mineral resources in a potential Phase V. Yet despite Grota do Cirilo’s vast potential, Sigma Lithium remains financially distant from Anna Cristina Cabral’s stated goal of achieving USD 1 billion in annual net profit. In the first three quarters of 2023, Sigma Lithium’s total revenue amounted to USD 96.9 million, with a cumulative net loss of USD 18.8 million. As of end-September 2023, its total assets stood at USD 336 million, while total liabilities totaled USD 175 million. To better attract prospective buyers, Sigma Lithium is currently pursuing dual listing of its subsidiary Sigma Brazil on both the NASDAQ and the Singapore Exchange. If successful, the dual listing would enable acquirers to finance purchases via stock issuance on either exchange.

Sigma Lithium Announces Board Reelection with Over 96% Votes at Annual Shareholder Meeting, Supporting Growth Strategy in Minas Gerais

Jul 15, 2026

Sigma Lithium shareholders re-elected all directors with over 96% support, validating the company's growth strategy in Minas Gerais. The company plans to build a second factory to increase lithium oxide concentrate production to 520,000 tonnes per year.

TMX Newsfile

2026-03-31

Sigma Lithium Signs $146M in Offtake Agreements

2026-04-05

Sigma Lithium Ties Customer Funding To Expansion While Avoiding Dilution

2026-04-06

Sigma Lithium Earnings Call: Cash, Costs and Growth

2026-04-06

Sigma Lithium (SGML) drops as short seller flags legal and operational risks

2026-04-08

A Look at Sigma Lithium (SGML) Valuation After New Financing, Earnings and Multi-Year Production Guidance