Tesla Consider The Acquisition Of Logistics Mining Company Sigma Lithium Corp

Sigma Lithium is one of the mining options being explored by Tesla (photo: Twitter @NasdaqExchange)

JAKARTA - US-listed share price Sigma Lithium Corp rose 21% on weekend trading after Bloomberg News reported that Tesla was considering acquiring the Canadian-based battery metal mining company.

It was reported by Reuters that Tesla had spoken with potential advisers on the offer, and Sigma Lithium was one of the mining options that the electric car maker was exploring when they considered its own processing. However, representatives from Tesla and Sigma Lithium did not immediately comment on this report.

Sigma is finalizing the construction of a hard rock lithium mine in Brazil which is expected to open in April. The mine will result in a concentration of spoduments, which can be used to make lithium hydroxide, a type of metal favored by several automakers, including Tesla and BMW.

This project will use hydroelectric power, thus helping to significantly reduce its carbon footprint. Sigma Lithium shares, which have a market cap of US$3.21 billion (Rp48.6 trillion), nearly tripled last year's value.

Tesla CEO Elon Musk said last year that the company was open to buying mining companies if it was producing its own metal supply of electric vehicles would accelerate the adoption of clean energy technology worldwide.

Tesla and other automakers routinely talk to mining companies of all sizes about potential supply of lithium and other metal electric vehicles without having to sign a contract. Last month, Tesla signed an agreement with

Tesla also has supply contracts for nickel, lithium, and various other metal electric vehicles from suppliers around the world.

Even the Indonesian government had made an offer to Tesla to invest in making battery factories in Indonesia.

In 2020, the Coordinating Minister for Maritime Affairs and Investment of Indonesia, Luhut Pandjaitan, once revealed that his party had spoken with electric car companies, including Tesla, to explore possible investments in Indonesia, especially in terms of battery production.

In addition, Indonesia has abundant nickel reserves, the main raw material for electric car batteries, so that Indonesia has great potential to become a global electric car battery production center. However, until now there has been no official confirmation from Tesla regarding the plan.