World's Lowest Cost Supplier Of Lithium In Batteries In Talks With Tesla China

World's Lowest Cost Supplier Of Lithium In Batteries In Talks With Tesla China
FILE PHOTO: A Tesla charging station is pictured during the media day for the Shanghai auto show in Shanghai, China April 16, 2019. (Photo: REUTERS/Aly Song)

A startup mineral exploration company in Brazil, the Sigma Lithium Resources Corp., that focuses on acquisition and development of lithium-based projects has met not only with Tesla but also with other automakers about supplying in the coming years the key battery ingredient of lithium.

Always been the go-to for over 150 years, the world is now phasing out lead acid batteries because of its dangerous acid, outdated efficiency and weight.

Lithium is highly reactive making current flow easily through the battery.

Lithium is also the answer for clean energy that will lessen global dependence on fossil fuels.

In the end, there will be a reduction in carbon footprint making renewable energy like wind and solar sustainable.

Likewise, lithium is lighter than other metals used in batteries.

Lead, for instance, is surpassed by lithium for use in phones and electric cars that need lighter batteries to increase their range.

According to Sigma executive Calvyn Gardner, Tesla supplier Ganfeng Lithium had asked for a meet up to discuss a business deal.

Tesla's belief in lithium is backed up by a research paper done by a Tesla team, "A Wide Range of Testing Results on an Excellent Lithium-Ion Cell Chemistry to be used as Benchmarks for New Battery Technologies."

In this study, a three-year testing found out the potential of electric lithium-based vehicle battery packs that can drive more than 1 million miles and last more than twenty years.

Sigma likes to ship to Tesla in California but this is only possible if the makers of cathodes, one of the two main battery components, will have its own plant in the US.

The company also had informal meet ups with German automakers BMW and Volkswagen as these companies are increasing their EV (electric vehicle) production.

Sigma, with green, low-risk and sustainable mining operations, is holding off on the deal as it completes the process of meeting the terms and thinking about the conditions of Tesla China's Ganfeng Lithium's proposal of supplying exclusively to the mainland.

They are still thinking whether this exclusivity is what they want to be doing over a long time says Sigma Executive Calvyn Gardner.

Sigma inked an alliance with Japan's Mitsui, a general trading and investment company in April that included US$30 million in funds for a production plant wherein Mitsui will get close to a third of the mine's initial planned output of 220,000 tons.

This alliance will help Sigma get closer to other automakers because of Mitsui's partnerships with battery makers that supply them to cars.el

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