CNA – United States- (US) listed shares of Sigma Lithium Corp rose 21 per cent in extended trading after Bloomberg News reported Tesla Inc was weighing a takeover of the Canada-based battery metals miner.
Tesla has been speaking with potential advisers about a bid, the report said, and added that Sigma Lithium is one of the mining options the electric vehicle maker is exploring as it mulls its own refining.
Sigma is finishing construction of a hard rock lithium mine in Brazil that it expects to open by April. The mine will produce spodumene concentrate, which can be used to make lithium hydroxide, a type of the metal preferred by some automakers including Tesla and BMW.
The project would use hydroelectric power, thus helping to greatly reduce its carbon footprint. US stock of Sigma Lithium, nearly trebled in value last year.
Chief executive Elon Musk said last year Tesla was open to buying a mining company if producing its own supply of electric vehicle metals would speed up worldwide adoption of clean energy technologies.
