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Report: Sigma in lithium supply discussions with Tesla

Sigma Lithium Resources Corp. CEO Calvyn Gardner said the company has had discussions with Tesla Inc. as well as other car manufacturers over lithium supply contracts, Reuters reported.

Gardner said the company also had talks with Tesla's supplier Ganfeng Lithium Co. Ltd. on the electric vehicle maker's request, but is holding off on a supply deal due to issues with terms put up by the Chinese firm.

Ganfeng's terms include clauses that will restrict Sigma to supplying lithium almost only to Chinese customers. "It's not really what we think we should be doing over the long term," Gardner said.

The Brazil-based company is more interested in shipping lithium directly to Tesla in California, Gardner noted. However, that will be possible after cathode makers start operations in the U.S.

Sigma also held informal talks with Volkswagen AG and BMW, the report said.

In early April, Mitsui agreed to prepay US$30 million to the company for a six-year supply of battery-grade lithium concentrate, comprising up to 55,000 tonnes per year.

The agreement will provide a significant portion of funding required for a commercial production plant at Sigma's Grota do Cirilo lithium project in Brazil.

The company received environmental licenses for construction and installation of its lithium commercial production plant from the environmental authority of Minas Gerais state in June.