Sigma Lithium Corp. SGML, a leading lithium producer based in São Paulo, Brazil, is making strides in its mission to power the electric vehicle revolution with sustainable lithium. The company has secured a R$487 million (approximately $90 million) development loan from the National Brazilian Bank for Economic and Social Development (BNDES) to construct its second Greentech plant, dedicated to producing carbon-neutral lithium concentrate.
The loan, representing nearly 99% of the R$492 million capital expenditure budget for the plant, will be used to build the facility in Vale do Jequitinhonha, Brazil. Construction is already underway, with completion expected in summer 2025.
Sigma Lithium, known for its commitment to environmentally and socially responsible practices, has benefited from favorable market conditions. The company’s equipment is primarily produced and assembled in Brazil, and the loan’s interest rate of 7.45% is below the Brazilian sovereign interest rate of 10.5%. This, combined with the loan’s long duration of 16 years, allows Sigma to retire existing short-term trade finance lines and strengthen its financial position.
This investment comes at a pivotal moment for the electric vehicle (EV) industry. Global EV sales are projected to grow at a compound annual growth rate (CAGR) of 13.8% until 2032, reaching $1.89 trillion. This surge in demand necessitates a significant increase in the production of raw materials like lithium, which are essential for EV batteries.
The construction of the second Greentech plant will double Sigma Lithium’s production capacity of green lithium to approximately 520,000 tonnes from the current 270,000 tons. The new facility will incorporate innovative technologies designed to enhance the efficiency of its industrial process, turning mineral spodumene ore into high-purity lithium concentrate.
Ana Cabral, CEO and Co-Chairman of Sigma Lithium, expressed enthusiasm for the BNDES loan. “Having BNDES as a creditor represents the support of the government of Brazil for Sigma Lithium’s industrial expansion plans at Vale do Jequitinhonha,” she stated. “The award of this development loan by BNDES crowns over 10 years of relentless execution by our team at Sigma Lithium to build our global leadership in the industrial production of carbon-neutral, environmentally sustainable and socially traceable lithium materials.”
The loan also aligns with BNDES’s broader strategy to develop a competitive and scalable industrial supply chain for sustainable lithium materials in Brazil. BNDES emphasized the loan’s importance in supporting the growth of a green and inclusive industrial base within the country.
Cabral highlighted the transformative impact of Sigma Lithium’s operations in Vale do Jequitinhonha, a region that was once impoverished but is now known as “Lithium Valley.” She remarked, “In the last decade, we have pioneered and consistently championed the socially inclusive and environmentally sustainable industrialization of battery materials. As a result, our region, once one of the most impoverished in Brazil, now prospers and is known the world over as ‘Lithium Valley.’”
With the BNDES loan, Sigma Lithium is poised to become a major player in the global lithium market. The company’s commitment to sustainability, coupled with its robust production capacity and innovative technologies, makes it well-positioned to meet the growing demand for green lithium in the electric vehicle industry.
