Sigma Lithium gets bullish start from JPMorgan

Sigma Lithium Corp (TSX-V:SGML, NASDAQ:SGML) said JPMorgan has initiated equity research coverage on the company with an "Overweight" rating, citing a persistent industry deficit and an extended structural growth runway for the lithium producer.

The bank's North America Metals & Mining team, in a 66-page initiation report, described Sigma Lithium as an "operational de-risking plus brownfield growth" story, saying the company's valuation is "being overly discounted on growth and industry risks."

JPMorgan said Sigma Lithium's production volumes could more than double through a modular expansion, with most enabling infrastructure already in place. Phase 1 is operating at roughly 330,000 tonnes per annum nameplate capacity, while Phase 2 and Phase 3 would each add about 250,000 tpa, taking guided installed capacity to around 580,000 tpa by the end of 2027 and 830,000 tpa by the end of 2028.

The bank said capital intensity for the expansion is "best-in-class" for new hard-rock lithium capacity, with each incremental production line estimated at about $100 million, or roughly $400 to $430 per tonne installed, compared with about $1,100 per tonne for peers.

JPMorgan also placed Sigma Lithium in the first quartile of the industry cost curve and said 2026 will be the tightest year in its lithium price cycle view, with 2027 marking the peak price year and deficit conditions persisting through 2029.

The bank pointed to Sigma Lithium's shift to an in-house mining model, following a pause in late 2025, as addressing the bottleneck that constrained 2025 production, with early 2026 trends showing improving output cadence and lower unit costs.

"We are honored that an institution of JPMorgan's caliber has initiated coverage of Sigma Lithium," said Ana Cabral, Sigma's CEO. "We appreciate the recognition of the hard work and execution of our team in Brazil in building one of the world's largest operating industrial lithium complexes."

Sigma Lithium said it expects to deliver 240,000 tonnes of lithium oxide concentrate within 12 months and 330,000 tonnes in fiscal 2027.