Tesla sizes up procurement bid for Sigma Lithium Corp
Tesla Inc (TSLA.O) is considering acquiring Sigma Lithium Corp, a Canada-based battery metals mining company, the company's U.S.-listed shares increased by 21% in after-hours trading. According to Bloomberg News, Tesla has been in discussions with potential advisors regarding a possible acquisition, and Sigma Lithium is among several mining alternatives being considered by the electric vehicle manufacturer as it considers refining its own materials.
According to insiders familiar with the matter, Tesla has been in talks with potential advisors regarding a potential bid. The report also stated that as Tesla considers refining its own materials, it is currently exploring several mining options, including Sigma Lithium.
The U.S.-listed shares of Sigma Lithium, with a market capitalisation of $3.21 billion, saw a nearly three-fold increase in value over the last year.
In 2020, CEO Elon Musk announced that Tesla would consider acquiring a mining company if it would accelerate the global adoption of clean energy technologies by allowing Tesla to produce its own supply of electric vehicle metals.
Tesla, as well as other automakers, frequently engage in discussions with mining companies of various sizes about the possibility of procuring lithium and other electric vehicle metals, but this does not necessarily imply that any contracts have been signed.