Sigma Lithium has announced a final investment decision (FID) to allocate $100m (C$135.64m) in capital expenditure (capex) for Phase 2 of its Greentech Industrial Plant in Brazil.

This investment is set to double the annual production capacity of its Quintuple Zero Green Lithium from the current 270,000t to 520,000t by 2025.

The expansion, approved by Sigma’s board, will enable the company to produce enough lithium concentrate to power an estimated 1.8 million EVs.

Sigma has also confirmed the imminent mobilisation of around 180 workers and construction equipment to commence the building of the earthworks, foundation and infrastructure for the dense media separation production plant.

The construction civil works, to be undertaken by Brazilian company Promon Engenharia, which delivered Phase 1, are expected to be finished within six months.

Additionally, the company has identified around 35 critical long lead items necessary for the project and is set to begin placing orders and deposits to ensure adherence to manufacturing schedules.

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The total timeline for building and commissioning the Phase 2 Greentech Industrial Plant is projected to be around ten months.

With earthworks starting in April, the company anticipates that construction and assembly will commence on an accelerated schedule beginning in the fourth quarter of 2024.

Sigma Lithium co-chairperson and CEO Ana Cabral said: “2023 marked an incredible year for Sigma Lithium and the culmination of nearly a decade of hard work by the Sigma Lithium team.

“The company is delighted to announce that it concluded its first year of production with positive cash adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] and cash operating profit, despite the sharp decline in lithium prices during 2023.

“This is a testament to our financial discipline in managing production costs. Irrespectively of the market, Sigma Lithium is a low-cost producer of a superior product with measurable ‘value in use’ that brings cost savings for its clients.”