Sigma Lithium Corporation, the largest producer of industrial-mineral lithium oxide concentrate in the Americas, has temporarily suspended all of its mining and industrial production operations in Brazil. The suspension, which began on September 30, 2026, is a result of an atypical 15-day delay by the Federal Court of Appeals in reviewing the company’s legal defense against a preliminary emergency injunction issued by a local Federal Court.
Material Actions and Disclosures
Sigma Lithium has been actively engaged in legal proceedings to challenge the preliminary emergency injunction issued by the local Federal Court, which was based on a lawsuit filed by the NGO Ngolo. The company’s legal defense argues that its operations do not cause adverse impacts on the Quilombola community and that its environmental licenses are protected under the rule of law. The company’s environmental licenses were issued and deliberated by the State of Minas Gerais between May 2019 and April 2023, predating the technical report self-issued by the expert hired by the Quilombola.
The company has also been involved in social investment initiatives in the Jequitinhonha Valley, contributing to shared and lasting local prosperity. These initiatives include programs for economic inclusion, water, food security, education, and drought resilience, benefiting approximately 80,000 people across 12 municipalities in the region.
Forward Commitments
Sigma Lithium confirms that it remains focused on advancing its expansion plans, expecting to deliver 330,000 tonnes of lithium oxide concentrate in FY 27. However, the company will postpone by 3 months its 12-month guidance of 240,000 tonnes. The company plans to resume in 2027 a Phase 2 expansion designed to close to double annual production capacity to 580,000 tonnes and plans a Phase 3 expansion to increase this further to 830,000 tonnes.
Despite the temporary suspension, Sigma Lithium will maintain the commercial and recycling operations that ensure the circularity of 100% of its dry stacked tailings, selling high-purity lithium fines and generating cash flow.
The company will continue to follow the rule of law and seek a secondary appeal in the superior federal courts in the event of a negative ruling by the Federal Court of Appeals.