Tesla mulling takeover of Brazilian lithium miner

Tesla, the CEO of which has shown past interest in lithium extraction and refinement, is now reportedly considering a purchase of Canadian-headquartered, Brazilian-focused lithium mining company Sigma Lithium.

According to reports including Bloomberg via the Business-Standard, people with knowledge of the situation have relayed that deliberations are in the early stages and the transaction value could reach US$3 billion.

The Standard report also said CEO Elon Musk has been speaking with potential advisers about a bid for the miner, and that Sigma is one of multiple mining options he is eyeing.

Sigma’s largest shareholder is A10 Investimentos, a Brazilian private equity fund co-founded by Sigma co-chief executive officers Ana Cabral-Gardner and Calvyn Gardner.

Neither Sigma nor Tesla have made public comments on the reports. However, one individual reportedly has said that Rio Tinto, which is looking for lithium takeover targets, is not interested in Sigma due to a high asking price.

The company has already signed supply deals with LG Energy Solution and Japanese trading house Mitsui.

Sigma’s properties are located in Brazil’s mining-friendly Minas Gerais state, in the municipalities of Araçuaí and Itinga. They are approximately 450 km northeast of the state capital, Belo Horizonte.

The company holds 27 mineral rights in four properties spread over 191 km2, or over 19,000 hectares, which include nine past-producing lithium mines.

Sources: EconoTimes, Bloomberg and Teslarati

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