Sigma Lithium Corporation has secured a $100 million collateralized bank guarantee from a major Brazilian bank, backed by client guarantees, letters of credit and export receivables. The guarantee is subject to the completion of definitive written agreements and provides a secured source of capital for the company’s next‑phase development.
The funding will support the construction and installation of Greentech Industrial Plant 2, which will increase the company’s annual lithium oxide concentrate capacity from 270,000 tonnes to 520,000 tonnes—nearly doubling output. This expansion is a key component of Sigma’s strategy to lower all‑in sustaining costs and generate free cash flow in a volatile lithium market.
By securing the guarantee, Sigma removes a significant financing hurdle, allowing the company to proceed with Phase 2 without raising additional equity or incurring high‑cost debt. The guarantee also signals confidence from the bank and the company’s global customers, reinforcing its position as a low‑cost, sustainable lithium producer in Brazil.
The announcement was met with a positive market reaction, with analysts noting the de‑risking effect of the guarantee and the potential for accelerated Phase 2 deployment. The guarantee aligns with Sigma’s recent offtake agreements totaling $146 million, including prepayments, which further demonstrate counterparty confidence.
Sigma’s financial health has improved, with Q4 2025 operating cash flow of $31 million and a reduction in operating costs. The company’s all‑in sustaining cost guidance for Phase 1 is $592 per tonne, and the Phase 2 expansion is expected to bring further cost efficiencies.
The bank guarantee, combined with strong cash generation and offtake commitments, positions Sigma to scale its production while maintaining a lean capital structure, supporting long‑term growth and resilience in a volatile lithium market.
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