Discussion on Canada's Acquisition of 'Sigma Lithium'
"Considering Triple Production Increase in Brazil Next Year"
[Asia Economy Reporter Moon Chaeseok] U.S. electric vehicle company Tesla is reportedly considering the acquisition of a lithium company, Bloomberg News reported on the 18th (local time).
Bloomberg cited sources familiar with the matter, stating that Tesla is in talks to acquire the Canadian company 'Sigma Lithium.'
Sigma Lithium is a company that produces lithium, a key raw material for electric vehicle batteries.
The company is currently developing a large-scale lithium mine known as 'Grota do Cirilo' in Brazil, aiming to start operations in April.
Sigma Lithium announced that the mineral reserves of this mine are 63% greater than expected. In December last year, it announced plans to increase lithium production next year by about three times the current amount.
Tesla is not the only automaker focusing on securing minerals necessary for making electric vehicle batteries, such as lithium.
General Motors (GM) reportedly acquired a stake in another Canadian lithium producer, 'Lithium Americas,' last month.
Following the report of Tesla's acquisition talks, Sigma Lithium's stock price surged more than 25% in after-hours trading, Bloomberg reported.
However, the acquisition consideration is still in the early stages and may not lead to an actual deal.
Sources explained that Sigma Lithium is one of several options Tesla is considering as it reviews building its own lithium refining plant.
Elon Musk, Tesla's CEO, and Cabral Gardner, co-CEO of Sigma Lithium, did not respond to inquiries regarding the acquisition rumors.
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