Tesla mulls acquisition of Sigma Lithium mining company

Tesla, an auto company known for its electric vehicles, is reportedly considering the acquisition of Sigma Lithium Corp., a Vancouver, Canada-based lithium mining firm. It is said to be one of the many mining options that Elon Musk’s company is looking into as it explores having its own refining facility.

Tesla will have to shell out an estimated amount of $3 billion to buy the Brazilian lithium mining company. It was noted that the company and its chief executive officer, Elon Musk, have continuously shown interest in the extraction and refinement of lithium in the last five years.

As per Teslarati, since the EV maker’s demand for lithium has been increasing fast, the acquisition of a lithium miner is definitely beneficial. Based on the reports, Tesla is already very close to buying Sigma Lithium.

The Canadian miner is said to be one of the biggest lithium extractors in South America. It is located in the South Eastern State of Minas Genrias, where it has been carrying out its mining operations since 2018. One of the best things about the deal is the fact that Sigma is close to the Atlantic coast, so shipment of the extracted lithium is easier to transport around the world.

In any case, as of this time, Sigma Lithium and Tesla representatives have not commented regarding this news yet despite the media reaching out to them. Thus, the story is still considered a “rumor” as it was leaked information.

Then again, shares of Sigma Lithium reportedly surged by more than 25% in after-market trading after the news of a possible Tesla acquisition emerged. Finally, Business Standard reported that negotiations about the acquisition deal are still in the early stages. It is possible that the discussions may not lead to an actual deal.

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