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BYD (BYDDY) Discusses Supply Deal With Brazil's Sigma Lithium
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BYD Company Limited (BYDDY - Free Report) is discussing a supply agreement with Sigma Lithium Corporation (SGML - Free Report) , a battery-grade lithium producer in Brazil, to secure access to the raw material for power batteries.
Per the Financial Times, the China-based automaker is in discussion with Sigma Lithium, valued at $2.9 billion, over a possible supply deal, joint venture or acquisition.
Per the report, Sigma started shipping lithium, a crucial element for electric vehicle (“EV”) batteries, last year from its hard-rock mine and processing plants in Minas Gerais.
Per Alexandre Baldy, Brazil’s chairperson of BYD, the company met the chief executive of Sigma Ana Cabral Gardner in Sao Paulo last month. He, however, declined to give more information on the discussion.
Sigma obtains battery-grade lithium concentrate from mined lithium spodumene ore. Per the report, the lithium producer plans to triple its annual capacity to 270,000 tons.
BYD offers six models in Brazil, including Seal, Tang EV, Han EV, Yuan Plus EV, Song Plus DM-i and Dolphin.
The China-based automaker recently outstripped Tesla to become the largest EV manufacturer in the world.
Per a joint announcement by BYD and the government of Brazil’s state of Bahia, the company will build a large manufacturing base complex in Brazil, which will consist of three plants.
It is constructing its first EV facility outside Asia in Brazil as part of a $620 million investment.
A production plant for electric buses and truck chassis, an energy passenger vehicle production plant and a processing plant will be included in the industrial complex.
The energy passenger vehicle production plant will produce pure electric and plug-in hybrid models, with an estimated annual capacity of 150,000 units.
Per BYD, the processing plant will use local port resources to fulfill the demand for new energy products in the global market.
The industrial complex is expected to begin production in the second half of 2024.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 5.8%. The EPS estimates for 2024 and 2025 have moved up a penny and 30 cents, respectively, in the past 60 days.
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BYD (BYDDY) Discusses Supply Deal With Brazil's Sigma Lithium
BYD Company Limited (BYDDY - Free Report) is discussing a supply agreement with Sigma Lithium Corporation (SGML - Free Report) , a battery-grade lithium producer in Brazil, to secure access to the raw material for power batteries.
Per the Financial Times, the China-based automaker is in discussion with Sigma Lithium, valued at $2.9 billion, over a possible supply deal, joint venture or acquisition.
Per the report, Sigma started shipping lithium, a crucial element for electric vehicle (“EV”) batteries, last year from its hard-rock mine and processing plants in Minas Gerais.
Per Alexandre Baldy, Brazil’s chairperson of BYD, the company met the chief executive of Sigma Ana Cabral Gardner in Sao Paulo last month. He, however, declined to give more information on the discussion.
Sigma obtains battery-grade lithium concentrate from mined lithium spodumene ore. Per the report, the lithium producer plans to triple its annual capacity to 270,000 tons.
BYD offers six models in Brazil, including Seal, Tang EV, Han EV, Yuan Plus EV, Song Plus DM-i and Dolphin.
The China-based automaker recently outstripped Tesla to become the largest EV manufacturer in the world.
Per a joint announcement by BYD and the government of Brazil’s state of Bahia, the company will build a large manufacturing base complex in Brazil, which will consist of three plants.
It is constructing its first EV facility outside Asia in Brazil as part of a $620 million investment.
A production plant for electric buses and truck chassis, an energy passenger vehicle production plant and a processing plant will be included in the industrial complex.
The energy passenger vehicle production plant will produce pure electric and plug-in hybrid models, with an estimated annual capacity of 150,000 units.
Per BYD, the processing plant will use local port resources to fulfill the demand for new energy products in the global market.
The industrial complex is expected to begin production in the second half of 2024.
Zacks Rank & Key Picks
BYDDY currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) and Mercedes-Benz Group AG (MBGAF - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings suggests year-over-year growth of 4.2% and 73.1%, respectively. The EPS estimates for 2023 and 2024 have improved by 4 cents and 3 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MBGAF’s 2023 sales implies year-over-year growth of 5.8%. The EPS estimates for 2024 and 2025 have moved up a penny and 30 cents, respectively, in the past 60 days.