São Paulo, October 17th (Argus) - Ana Cabral, the CEO of Sigma Lithium, told Argus that Sigma Lithium has cancelled its plan to start producing lithium sulfate in Brazil and has instead focused on doubling its lithium concentrate production by 2030.
As lithium prices have dropped, market participants are turning to midstream processing to ensure stable production of cathode materials and precursors, which are the main cost drivers of electric vehicle batteries.
Sigma Lithium does not plan to engage in midstream processing. Previously, there was a plan to start producing lithium sulfate in Brazil by 2027, but the plan was suspended after the price of lithium spodumene hit bottom. Lithium spodumene can be directly converted into lithium carbonate and lithium hydroxide.
Ana Cabral said: "We will not pursue the production of chemical products until we are fully prepared." "We are still in a depressed market, so we are focusing on our area of expertise: producing more and more lithium concentrate."
The company's plan is to first double the capacity of lithium concentrate production and then increase it by another two times.
Sigma is the largest lithium producer in Brazil, with a current annual capacity of 270,000 tons of Grota do Cirilo lithium spodumene. Its phased expansion plan is proceeding smoothly.
Cabral said: "The infrastructure we installed for Grota do Cirilo can support the third production facility. So by 2027, we plan to build the third production facility." By the end of this year, the second phase will expand the capacity of the mine to 520,000 tons per year. The ultimate goal is approximately 768,000 tons of lithium spodumene concentrate per year.
Through large-scale production, Sigma hopes to reduce costs. According to Ana Cabral, the company's fully sustainable cost of $594 per ton is second only to Australia's Talison Lithium's Greenbushes mine.
