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Chinese electric vehicle maker BYD (OTCPK:BYDDF) has held talks about a possible acquisition of a lithium producer in Brazil.
BYD held talks with Sigma Lithium (NASDAQ:SGML) about a possible supply agreement, the The Financial Times reported on Sunday, citing an interview with Alexandre Baldy, president of BYD in Brazil.
“Different aspects are being discussed regarding supply, a joint venture, an acquisition… . . nothing is concrete,” Baldy told the Financial Times.
Baldy revealed that he met with Sigma Lithium CEO Ana Cabral-Gardner in Sao Paulo in December, although he declined to elaborate on the conversations. Sigma (SGML) declined to comment to the Financial Times.
BYD's report comes after Sigma Lithium (SGML) said in September it was evaluating strategic alternatives after receiving proposals for its Grota do Cirilo project in Brazil, Sigma Brasil and parent company.
Sigma Lithium (SGML) announced last month that it plans to list Sigma Brasil on both Nasdaq and the Singapore Stock Exchange. The double listing of Sigma Brazil is carried out solely “in order to close the strategic transaction.”
In connection with the strategic review, Sigma Lithium (SGML) said last month that it began detailed contractual and structural negotiations with the finalists, which it expected to continue until 2024.
A Brazilian publication reported last month that Chinese battery maker CATL and automaker Volkswagen (OTCPK:VWAGY) were likely the final bidders for Sigma Lithium (SGML). The two consortiums believed to be in the final stretch to buy Sigma Lithium were CATL and Volkswagen, according to a report from brazil exam publication.
Bloomberg reported last February that Tesla (TSLA) had been considering acquiring the company. Tesla (TSLA) approached Sigma Lithium (SGML), although no deal was reached, according to the Exame report. CMOC, a Chinese mining company focused on molybdenum, also analyzed the asset. PIF, the investment arm of Singapore's sovereign wealth fund, also moved forward in talks, although those discussions cooled over price.
The potential deal for BYD (OTCPK:BYDDF) comes as the electric vehicle maker announced Tuesday that it will begin selling vehicles in Indonesia, the world's fourth-largest nation by population, next week. BYD recorded record sales of 3.02 million electric vehicles in 2023, representing a growth of 62% from the previous year. Sales comprise 1.6 million battery electric vehicles and approximately 1.4 million plug-in hybrid electric vehicles.
