Sunday, June 1, 2025

Latest

Sigma Lithium To Enter Arbitration With LG Group Over 2021 Offtake Agreement

Sigma Lithium (TSXV: SGML) is headed to arbitration over a term sheet it signed with LG Energy Solution in 2021.

The company this evening indicated that it, along with its subsidiary Sigma Mineracao S.A., yesterday received a letter indicating the initiation of arbitration from the International Centre for Dispute Resolution of the American Arbitration Association. The arbitration is reportedly in relation to a breach of certain provisions under a term sheet it entered into with LG Energy Solution in 2021 for the purchase of lithium concentrate.

The agreement in question, which was announced by Sigma on October 5, 2021, is a binding term sheet for an offtake agreement that was to occur on a “take or pay” basis. The agreement, which was for a set period of six years, was to see Sigma supply 60,000 tonnes per year year of battery grade sustainable lithium concentrate beginning in 2023, with that offtake to grow to 100,000 tonnes per year beginning in 2024.

Source: Sigma Lithium

The agreement was said to be subject to the execution of mutually acceptable definitive documentation to implement the offtake arrangement – something Sigma now says was never entered in to. The original release however says that the offtake is “intended to be legally binding on both Sigma Lithium and LGES, and is subject to, among other things, completion of the negotiation of definitive written agreement(s), which are to be consistent with the agreed terms contained in the binding term sheet.”

That “legally binding” context appears to be what LG is now willing to attempt to dispute over.

READ: Sigma Lithium Receives LOI For Development Bank Financing Of Facility Expansion

Sigma believes the claims are “completely without merit” and says it will defend interests in the matter. At the same time, the company claims that it maintains a good rapport with LG Group, whom had a trading affiliate on site earlier this month for the purpose of beginning a commercial relationship.

Sigma Lithium last traded at $17.06 on the TSX Venture.


Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Solaris Resources: The Royal Gold Financing Package

How a Single Deal Turned 2 ‘Dead’ Mines into a $2B Project | Canadian Copper PEA – Simon Quick

Silver47 x Summa Silver: Creating An Explorer With A Billion Ounce Goal

Recommended

Silver47 x Summa Silver: Creating An Explorer With A Billion Ounce Goal

Canadian Copper: The $172M Combined Strategy PEA

Related News

Sigma Lithium Said To Be In Discussions With Tesla For Buyout

Sigma Lithium (TSXV: SGMA) appears to be the latest target in the lithium space, with...

Friday, February 17, 2023, 05:32:45 PM

Sigma Lithium: Constructive PEA on Brazil Lithium Project; Production Could Begin in Just Over a Year

On June 2, Sigma Lithium Resources (TSXV: SGMA) released a constructive preliminary economic assessment (PEA)...

Sunday, June 6, 2021, 09:00:00 AM

US Energy Department To Lend GM And LG $2.5 Billion For EV Battery Factories

The US Department of Energy on Monday announced that it will be lending US$2.5 billion...

Wednesday, July 27, 2022, 04:25:00 PM

China-Based EV Battery Maker to Raise Prices By At Least 20% Primarily Due to Soaring Lithium Price

Inflation is everywhere. On October 27, the giant China-based electric vehicle (EV) and battery maker...

Sunday, October 31, 2021, 09:00:00 AM

Sigma Lithium Increases Proven And Probable Reserves To 77.0 Million Tonnes At 1.40% Li2O

Sigma Lithium (TSXV: SGML) this morning is reporting an increase to its proven and probable...

Wednesday, May 8, 2024, 08:56:14 AM