Sigma Lithium plans to increase installed lithium oxide concentrate capacity to approximately 830,000 tons annually by the end of 2028, as record second-quarter profitability, lower production costs, and improving operating productivity support a multi-stage expansion of its Brazilian operations.
The company currently has annualized nameplate capacity of approximately 330,000 tons at its Grota do Cirilo operation. Sigma plans to build two additional plants, increasing installed capacity to approximately 580,000 tons per year by the end of 2027 and 830,000 tons by the end of 2028.
If completed as planned, the expansion would increase capacity by approximately 500,000 tons from the company’s current nameplate level and more than double the existing production platform.
The growth plan follows Sigma’s delivery of what it described as another record quarter of profitability. Q2 revenue reached a record $55 million, up from $42 million in Q1, while EBITDA margin increased to a company-record 47% from 39%. Gross margin remained high at approximately 60%.
Sigma sold approximately 24,400 tons of lithium oxide concentrate during Q2. Commercial flexibility helped increase its realized price by 17% sequentially to $2,089 per ton on an SC5 basis from $1,790 in Q1.
Operating costs decreased sharply as production increased. Sigma said costs fell more than 30% across the business, supported by financial discipline, the internalization of mining operations and upgrades to its mining equipment. Production increased 50% to approximately 35,400 tons as the operational ramp-up that began in January progressed.
Plant-gate costs declined 36% sequentially to $401 per ton, while CIF costs decreased 33% to $452 per ton. All-in sustaining costs fell 6% to $668 per ton, returning to levels last seen when the operation ran near nominal capacity in Q3 2025.
The productivity improvements prompted Sigma to advance its production ramp-up timetable by approximately three months. The company is targeting 240,000 tons of lithium oxide concentrate production over a 12-month period and expects 330,000 tons of production during fiscal 2027 from Plant 1 alone.
The 330,000-ton 2027 production target exceeds Plant 1’s original annual nominal capacity of 270,000 tons. Sigma attributed the improvement partly to productivity gains in its reprocessing circuit and more consistent spodumene delivery to the industrial plant.
Debt levels also continued to decline during Q2. Net debt fell to approximately $125 million from $134 million at the end of Q1. Total debt was down 25% from Q2 2025 and 43% over two years as Sigma continued repaying higher-cost short-term export financing facilities.
Sigma ended June with approximately $17 million of cash. It also continued receiving advance payments under a previously announced $96 million offtake agreement covering high-grade lithium oxide concentrate.
The company is evaluating financing alternatives that could enable prepayment of amounts outstanding under its Synergy export prepayment agreement, which totaled approximately $95 million at June 30, excluding $11 million of cash held as collateral.
Near-term operations are being affected by a partial temporary suspension while Sigma negotiates terms for an adjustment of procedures agreement with the Minas Gerais state government. Mining and plant activities were temporarily paused beginning in July, although sales of high-purity lithium fines produced through the reprocessing of previously generated tailings have continued.
Sigma expects mining to restart after the TAC agreement is finalized and anticipates a near-term resolution. The company estimates the environmental procedural adjustments contemplated by the proposed agreement would require approximately $1 million of capital spending, primarily for germination and grassing of waste-rock piles near the south mining pit.
Once mining activities resume, Sigma plans to continue increasing haulage capacity and move into the next phase of equipment upgrades as it progresses toward its larger 2027 and 2028 capacity targets.
