8 Best EV Battery Stocks To Buy in Late 2024

6. Sigma Lithium Corporation (NASDAQ:SGML)

Number of Hedge Fund Holders: 20

Sigma Lithium Corporation (NASDAQ:SGML) is a key player in the global EV battery market that focuses on lithium exploration and development in Brazil, especially for the EV sector. The company owns several properties in Minas Gerais, including Grota do Cirilo, Genipapo, Santa Clara, and São José, covering 185 square kilometers.

It received additional funding from Brazil’s Development Bank (BNDES) in August to expand production at Grota do Cirilo and secured a development loan of BRL 487 million (1 BRL = US$0.18) to fund its second Greentech Carbon Neutral Plant.

Sigma Lithium (NASDAQ:SGML) hosted its 2024 Investor Day on September 24 and highlighted a significant milestone in its production ramp-up. The company outlined plans to increase its industrial capacity to 125,000 tonnes per year of lithium carbonate equivalent (LCE) by 2026. The growth will come from two new production lines at the Greentech Plant, increasing capacity by 34,000 tonnes LCE by 2025 and 54,000 tonnes LCE by 2026.

Its strategy leverages economies of scale, subsidized financing, and a commitment to carbon neutrality. Recent investments aim to boost production by more than 10%, including monetizing stockpiled ore and implementing pre-screening steps to improve yields. The company projects an adjusted cash EBITDA of $420 million by 2025 and $700 million by 2027. This expansion is supported by the BNDES funding.

On September 16, Sigma Lithium (NASDAQ:SGML) shipped its 12th vessel of Quintuple Zero Green Lithium, which was its second sale to Mitsubishi, a major Japanese conglomerate that manufactures cars among other things. On October 23, the company announced its first shipment of 22,000 tonnes of Quintuple Zero Green Lithium to Abu Dhabi’s International Resources Holding (IRH).

The transaction reflects the company’s strategy to partner with entities that have strong financial backing. The price is provisionally set at 8.25% of battery-grade lithium carbonate’s market price at the shipment date.

In the third quarter, the company produced 60,237 tonnes of Quintuple Zero Green Lithium, surpassing its 60,000-tonne target and increasing production by 22% from the second quarter. The achievement is attributed to the efficiency of dense medium separation technology used at Sigma’s (NASDAQ:SGML) Grota do Cirilo operations.