Lithium miner Sigma responds to report that Tesla is considering a buyout

Feb 17 (Reuters) – US-listed shares of Sigma Lithium Corp were up 21% in extended trading on Friday after Bloomberg News reported that Tesla Inc (TSLA.O) is considering a takeover of the Canada-based battery metal miner.

Tesla has spoken to potential advisers about a bid, the report said, citing people with knowledge of the matter, adding that Sigma Lithium is one of several mining options the electric vehicle maker is exploring as it considers its own sophistication.

Tesla and Sigma Lithium did not immediately respond to Reuter’s requests for comment.

Sigma is completing construction of a bluestone lithium mine in Brazil, expected to open in April. The mine will produce spodumene concentrate, which can be used to make lithium hydroxide, a type of metal favored by some automakers, including Tesla and BMW (BMWG.DE).

The project would use hydropower, significantly reducing its carbon footprint.

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US shares of Sigma Lithium, with a market cap of $3.21 billion, almost tripled in value last year.

Chief executive Elon Musk said last year that Tesla was open to buying a mining company if producing its own supply of metals for electric vehicles would accelerate global adoption of clean energy technologies.

Tesla and other automakers routinely talk to mining companies of all sizes about potential supplies of lithium and other EV metals without necessarily signing any contracts.

Last month, Tesla signed an agreement with Piedmont Lithium Inc (PLL.O) to supply spodumene concentrate from Quebec starting later this year.

Tesla also has supply contracts for nickel, lithium and a range of other EV metals from suppliers around the world.

Reporting by Tiyashi Datta in Bengaluru and Ernest Scheider; Edited by Shinjini Ganguli

Our Standards: The Thomson Reuters Principles of Trust.


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