American EV giant Tesla allegedly considers a takeover of Sigma Lithium Corp., per reports, citing people familiar with the matter. In effect, the battery metals miner’s US-listed stocks surged 21% on February 17.
Interestingly, the report noted that Tesla boss Elon Musk has already been “speaking with potential advisers about a bid.”
Will the bid materialize?
A10 Investimentos, partly founded by Sigma CEO Ana Cabral-Gardner, currently owns 46% of the mining company. Now, the Brazilian private equity fund has reportedly been planning to sell its shares in the company.
However, some report indicated that Sigma Lithium is not the only mining firm that Tesla is considering as it prepares its own refining. They also explained that the owners’ lofty price expectations and the shares’ recent triple-digit price growth might cause prospective bidders to hold off.
Another interesting detail disclosed by the sources is that the owners might decide to postpone the sale to pursue and finish the company’s core project. To put things in perspective, Grota do Cirilo, a sizable lithium rock deposit in Brazil is currently being developed by Sigma Lithium. It is expected to operate in April, producing the company’s spodumene concentrate.
For your information, spodumene concentrate is a mineral that can be used to develop lithium hydroxide, a battery metal that some automakers, including Tesla and BMW, favor.
Notably, the cited sources told the publication that Tesla and Sigma Lithium are still in the early stage of discussions, suggesting that there may not be a deal between the two major companies.
