Monitoring Desk
ISLAMABAD/NEW YORK: United States (US) listed shares of Sigma Lithium Corp rose 21 percent in extended trading after Bloomberg reported that Tesla Inc is weighing a takeover of the Canada-based battery metals miner.
The report said that Tesla has been speaking with potential advisers about a bid, citing people with knowledge of the matter.
Sigma Lithium is one of the several mining options the electric-vehicle maker is exploring as it mulls its refining.
Sigma is finishing construction of the hard rock lithium mine in Brazil it expects to open by April. The mine would produce spodumene concentrate, which can be used to make lithium hydroxide, a metal preferred by some automakers, including BMW and Tesla.
The project would use hydroelectric power, thus helping to reduce its carbon footprint significantly.
United States stock of Sigma Lithium, which has a market capitalization of 3.21 billion dollars, nearly trebled in value last year.
Chief executive of Tesla
Chief executive Elon Musk said the previous year that Tesla was open to buying a mining company if producing its supply of electric car metals would speed up global adoption of clean energy technologies.
Tesla and the other automakers routinely talk to mining all companies of all sizes about potential lithium supplies and other EV metals without necessarily signing contracts.
The previous month, Tesla signed an agreement with Piedmont Lithium Inc for spodumene concentrate supply from Quebec starting later this year.
Tesla has supply contracts for nickel, lithium, and a range of other EV metals from suppliers across the globe.
