Sigma Lithium's Green Lithium Shipment: A Milestone in Sustainable Energy Transition

Sigma Lithium, a leading global lithium producer, has announced a significant shipment this week of 22,650t of Quintuple Zero Green Lithium to Abu Dhabi's IRH. This shipment marks a crucial milestone in the company's commitment to powering the next generation of electric vehicles with carbon-neutral, socially and environmentally sustainable lithium concentrate. Let's delve into the implications of this shipment and its impact on the global lithium market.

Sigma Lithium's partnership with Abu Dhabi's IRH for this 22,650t shipment of Quintuple Zero Green Lithium enhances its global supply chain and market reach significantly. IRH, backed by Abu Dhabi's strong balance sheet, is a leading participant in metals trading, broadening Sigma's commercial strategy to encompass partners with robust financials. This alliance creates a low-cost, resilient global supply chain built on ethically sourced lithium materials, aligning with Sigma's commitment to sustainability and traceability. The consistent near-monthly shipment cadence increases commercial flexibility, enabling Sigma to diversify sales across different geographies and clients, and capitalize on market opportunities.



Sigma Lithium's alliance with Abu Dhabi's IRH offers potential benefits in pricing and market stability. By securing a consistent buyer, Sigma Lithium can better predict revenue streams, reducing pricing volatility. IRH's strong balance sheet ensures reliable payments, enhancing Sigma Lithium's financial stability. Additionally, the alliance may provide access to new markets, further diversifying Sigma Lithium's customer base and reducing reliance on a single market.

The provisional price of 8.25% of battery-grade lithium carbonate quoted at GFEX for this shipment is a significant increase from historical prices. In 2021, the average price was around $13,000 per tonne, and it surged to $62,000 per tonne in 2022. Despite the recent decline to $45,000 per tonne, the provisional price indicates a strong rebound. This price increase reflects the growing demand for lithium in the electric vehicle industry and the scarcity of supply.



Sigma Lithium's recent shipment of 22,650t of Quintuple Zero Green Lithium to Abu Dhabi's IRH at a provisional price of 8.25% of battery-grade lithium carbonate quoted at GFEX indicates a strategic move towards more resilient supply chains. This price, while lower than previous shipments, reflects market conditions and Sigma's commitment to long-term partnerships. Assuming an average price of $1,000/tonne for battery-grade lithium carbonate, the shipment's value is approximately $18.2 million. Given Sigma's Q3 2024 production of 60,237t, this shipment represents around 37% of total production for the quarter. Assuming a constant price for the remaining production, Sigma's revenue for Q3 2024 could reach approximately $161.3 million, with an expected profit margin of 36.4% based on FY2023 Adjusted EBITDA margin. For the full fiscal year, assuming similar production and pricing trends, Sigma's revenue could reach around $645.2 million, with an expected profit margin of 36.4%.

Sigma Lithium's pricing strategy, with the provisional floating price set at 8.25% of battery-grade lithium carbonate, positions it competitively in the global lithium market. This pricing approach allows Sigma Lithium to maintain a strong commercial relationship with Abu Dhabi's IRH, a leading participant in metals trading backed by Abu Dhabi's strong balance sheet. By offering metallurgically unique and ethically sourced lithium materials, Sigma Lithium can deliver superior price realizations over time, further enhancing its competitive position.

In conclusion, Sigma Lithium's shipment of 22,650t of Quintuple Zero Green Lithium to Abu Dhabi's IRH underscores its commitment to sustainable and ethical lithium production. This shipment, priced at 8.25% of battery-grade lithium carbonate, reflects Sigma's dedication to traceability and ethical sourcing, aligning with IRH's strong balance sheet and focus on battery metals. The company's consistent operational cadence, with near-monthly shipments, demonstrates its reliability as a mature producer, while its increased production levels showcase the suitability of dense medium separation technology for lithium processing. Sigma Lithium's commercial strategy, focused on building a global, geoeconomically neutral supply chain of ethically produced, low-carbon, and environmentally sustainable lithium materials, positions it as a leader in the energy transition.