Feb 17 (Portal) – U.S.-listed shares of Sigma Lithium Corp rose 21% in extended trading on Friday after Bloomberg News reported that Tesla Inc (TSLA.O) is considering an acquisition of the Canada-based battery metals miner .
Tesla has been in talks with potential advisors about an offer, the report said, citing people with knowledge of the matter, adding that Sigma Lithium is one of the many mining options the electric vehicle maker is exploring as it discusses ponder his own refinement.
Tesla and Sigma Lithium did not immediately respond to Portal requests for comment.
Sigma is completing construction of a hard rock lithium mine in Brazil, expected to open by April. The mine will produce spodumene concentrate that can be used to make lithium hydroxide, a type of metal favored by some automakers like Tesla and BMW.
The project would use hydroelectric power, helping to significantly reduce its carbon footprint.
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US stock of Sigma Lithium, which has a market cap of $3.21 billion, has nearly tripled in value over the past year.
Chief Executive Elon Musk said last year Tesla was open to buying a mining company if producing its own supply of metals for electric vehicles would accelerate global adoption of clean energy technologies.
Tesla and other automakers routinely talk to mining companies of all sizes about potential supplies of lithium and other EV metals, without necessarily signing contracts.
Last month, Tesla signed an agreement with Piedmont Lithium Inc (PLL.O) to supply spodumene concentrate from Quebec, beginning later this year.
Tesla also has supply deals for nickel, lithium, and a number of other EV metals from suppliers around the world.
reporting by Tiyashi Datta in Bengaluru and Ernest Scheyder; Editing of Shinjini Ganguli
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