Feb 17 (Reuters) – U.S.-listed shares of Sigma Lithium Corp rose 21% in prolonged buying and selling on Friday after Bloomberg Information reported that Tesla Inc (TSLA.O) was weighing a takeover of the Canada-based battery metals miner.
Tesla has been talking with potential advisers a couple of bid, the report mentioned, citing folks with data of the matter, and added that Sigma Lithium is without doubt one of the many mining choices the electric-vehicle maker is exploring because it mulls its personal refining.
Tesla and Sigma Lithium didn't instantly reply to Reuters requests for remark.
Sigma is ending building of a tough rock lithium mine in Brazil that it expects to open by April. The mine will produce spodumene focus, which can be utilized to make lithium hydroxide, a sort of the steel most well-liked by some automakers together with Tesla and BMW (BMWG.DE).
The venture would use hydroelectric energy, thus serving to to vastly scale back its carbon footprint.
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U.S. inventory of Sigma Lithium, which has a market capitalization of $3.21 billion, practically trebled in worth final 12 months.
Chief govt Elon Musk mentioned final 12 months Tesla was open to purchasing a mining firm if producing its personal provide of electrical car metals would velocity up worldwide adoption of unpolluted vitality applied sciences.
Tesla and different automakers routinely discuss to mining corporations of all sizes about potential provides of lithium and different EV metals with out essentially signing contracts.
Final month, Tesla signed an settlement with Piedmont Lithium Inc (PLL.O) for provide of spodumene focus from Quebec, beginning later this 12 months.
Tesla additionally has provide contracts for nickel, lithium and a spread of different EV metals from suppliers throughout the globe.
Reporting by Tiyashi Datta in Bengaluru and Ernest Scheyder; Enhancing by Shinjini Ganguli
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