Sigma Lithium Corporation (NASDAQ: SGML, TSXV: SGML) today unveiled a major commercial milestone that strengthens its sales pipeline and near-term liquidity, centered on the sale of 150,000 tonnes of high-purity lithium fines and the activation of a production-backed $96 million revolver facility tied to future concentrate deliveries. The announcement highlights expanding demand for lithium products across the electric vehicle (EV) battery supply chain and reinforces Sigma’s role in supplying key raw materials. (Sigma Lithium Corp)
150,000 Tonnes Sold with Option for 350,000 More
Sigma Lithium disclosed that it has sold 150,000 tonnes of high-purity lithium fines — often referred to as “low-grade product” — at a net price of US $140 per tonne with delivery at its warehouse near the port of Vitória, Brazil. The agreement includes an option for the buyer to purchase an additional 350,000 tonnes at market prices, offering Sigma flexibility to capitalize on robust market conditions as demand for lithium feedstock remains strong.
While the fines product contains lower lithium oxide (Li₂O) content (about 1% Li₂O), its successful commercialization reflects strong interest from processors able to re-process the material into higher-grade concentrate — in some cases achieving up to 60% recovery into products exceeding 4% Li₂O content, which command significant premiums in the lithium market.
Sigma’s vice president of business development noted that recurring demand for the fines — generated annually through the company’s Greentech Plant dry-stacking process — is creating an additional revenue stream beyond traditional high-grade concentrate sales.
$96 Million Revolver Provides Liquidity Backed by Future Production
In parallel with the product sale, Sigma has triggered the commencement of a production-backed working capital revolver facility totaling US $96 million. Under the binding agreement with a leading battery materials supply partner, Sigma will supply 70,500 tonnes of high-grade lithium oxide concentrate during 2026 to support revolver drawdowns.
Under the terms of the revolver, Sigma receives prepayments of US $8 million per tranche approximately 30 days before scheduled production and delivery to Vitória. Each prepayment accrues interest based on the SOFR benchmark plus 1% for a 30-day period until the final sale is completed — a structure that provides Sigma with improved near-term liquidity while preserving upside exposure to market-driven pricing for high-grade concentrate.
Strategic and Commercial Implications
Lithium oxide concentrate remains a critical feedstock for producing battery-grade lithium chemicals used in EVs and energy storage systems. Sigma’s ability to sell both fines and concentrate across distinct commercial pathways signals strengthening market acceptance of its product quality, as well as ability to respond to evolving customer needs.
- Expanded revenue mix: The sale of low-grade fines, coupled with optional volumes, adds a recurring commercial channel and diversifies Sigma’s revenue beyond traditional concentrate sales.
- Liquidity support: The $96 million revolver, backed by future concentrate deliveries, bolsters near-term cash flow and helps fund ongoing production scale-up.
- Market positioning: As lithium market fundamentals continue to evolve with rising EV and battery demand, Sigma’s disciplined sales strategy — tying pricing to current spot indexes — helps preserve upside exposure to potential price improvements.
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