Miner Sigma Lithium said on Thursday it would supply more than 20 000 t of the mineral to commodity trader Glencore amid rising demand for the key element used in electric vehicle batteries.
The Vancouver-based miner said it would ship the 22 500 tonnes of lithium to Glencore from the Vitoria port in Brazil this week as part of a collaboration with the Swiss firm.
Sigma, which is exploring strategic alternatives including a potential sale of the company, said it would receive half of the prepayment in advance of shipment at a 9% premium to the average price of the metal in China, Japan and South Korea.
The lithium would be sourced from Sigma's Greentech lithium plant at its Grota do Cirilo Project in Brazil.
The company had started production at the Grota do Cirilo project earlier this year to supply roughly a fourth of its output to LG Energy Solution, with the rest slated for sale on the spot market.