Tesla has not been quiet in regards to the need for extra lithium mining operations to satisfy the necessity for the growing electric vehicle (EV) market. CEO Elon Musk has even suggested the automaker could have to “get into the mining and refining” of the EV battery ingredient. If a brand new report is true, Tesla has been looking into doing just that with a possible acquisition of Sigma Lithium Corp.
In accordance with sources aware of the discussions that spoke with Bloomberg, Tesla has engaged with advisors on a possible bid for the lithium miner. The sources noted that discussions were still in a preliminary stage and that a deal is much from certain, adding that Tesla can be taking a look at other mining operations, not only Sigma Lithium.
A possible cope with Sigma is sensible as the corporate’s largest shareholder, A10 Investimentos from Brazil, has been actively gauging interest from other miners and automakers about purchasing the corporate. Nevertheless, shares of Sigma have tripled up to now 12 months, making any bid costlier and fewer attractive to potential suitors.
Sigma is currently engaged in developing a big lithium rock deposit in Brazil. A part of the rationale for the surge in the corporate’s stock price is the high expectations being set by the owners, who in December said the mine had 63% more lithium than originally thought, and were considering tripling lithium production in 2024 because of this.
Sigma Lithium (SGML) is listed on the Toronto stock exchange (TSX) and is currently trading at around CAD$40 per share, giving it a market capitalization of CAD$4.2 billion. After news of the potential acquisition emerged, shares surged even higher in after-hours trading, up greater than 26%.