03:20 PM EDT, 08/29/2024 (MT Newswires) -- Sigma Lithium ( SGML ) , a global lithium producer dedicated to electric vehicles with sustainable Quintuple Zero Green Lithium Concentrate, said Thursday it received final approval for a BRL 486.8 million development loan to fund the construction of a second greentech carbon neutral industrial production plant for lithium concentrate at Vale do Jequitinhonha in Brazil.

Based on the current construction timetable, the company plans to complete construction and commissioning in the summer of 2025, a statement noted.

Among other highlights, Thursday's statement said the development loan provides the company with a 16-year repayment period "at a very low interest rate, a hallmark of development debt financing". As a result of the significant duration of this new loan to finance construction, during the third quarter of 2024 the company has decided to retire most of its unused existing short term trade finance lines. Sigma is repaying these lines using its current cash position.

With the second Greentech plant, Sigma expects to near double the production capacity of its Quintuple Zero Green Lithium from the current 270,000 tonnes per year to a total of 520,000 tonnes per year.

Sigma also noted the approved funding of BRL 487 million represents almost 99% of the BRL 492 million capex budget submitted to BNDES for the construction of the Second Greentech Carbon Neutral Plant, as per the Letter of Intent and a news release issued by the company in February 2024. Sigma added its capital budget for the construction of the plan has benefitted from fluctuations in local currency values, as most of the equipment is produced and assembled in Brazil and/or quoted in BRL.

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