Potential Supply Deal or Acquisition in the Works
China’s leading electric car manufacturer, BYD, is reportedly in discussions with Brazilian lithium producer Sigma Lithium for a potential supply agreement, joint venture, or acquisition.
This news highlights the increasing global interconnectivity in the electric vehicle (EV) industry, reports Reuters.
High-Level Meetings and Expansions
The talks were confirmed by BYD’s Brazilian chair, Alexandre Baldy, who mentioned meeting Sigma’s Chief Executive Ana Cabral Gardner in Sao Paulo last month.
However, details of these discussions remain undisclosed due to a confidentiality agreement. Both BYD and Sigma have not yet responded to requests for comments on the matter.
In a strategic move earlier this year, Sigma announced its intention to initiate a primary listing of Sigma Brazil on Nasdaq and the Singapore stock exchange.
Meanwhile, BYD, which is backed by Warren Buffet’s Berkshire Hathaway revealed plans in July to invest 3 billion reais ($600 million) in a new industrial complex in northeastern Brazil, with operations expected to commence in mid-2024.
Implications of the Deal
This potential collaboration between BYD and Sigma Lithium could be a significant step in bolstering the supply chain for electric vehicles, a market that is rapidly growing globally.
The deal would not only benefit BYD’s expansion and production capabilities but also enhance Sigma Lithium’s global reach and market presence.