Sigma Lithium Announces J. P. Morgan Initiated Equity Research Coverage with "Overweight" Rating Based on a Brownfield Growth Theme

Sigma Lithium Corporation (NASDAQ: SGML) (ASX: SAU) (TSXV: SGML) (BVMF: S2GM34) ("Sigma Lithium" or the "Company"), the largest producer of industrial-mineral lithium oxide concentrate in the Americas and dedicated to supplying global producers of batteries for energy security with sustainable and traceable lithium materials, announces that J. P. Morgan has initiated equity research coverage on the Company with an "Overweight" rating.

J. P. Morgan is also constructive on the lithium market, seeing a persistent industry deficit ahead, underpinning the extended structural runway for the Company to grow.

Core investment highlights of Sigma Lithium cited by research analysts from J. P. Morgan's North America Metals & Mining Team in a comprehensive 66-page "Initiation of Coverage Report" include: Market disconnect: Sigma Lithium is an "operational de-risking plus brownfield growth" story driven by a recovery in mining/plant cadence and a supportive lithium price/tightness backdrop, whose valuation is "being overly discounted on growth and industry risks".

The valuation underwrites a re-rating as execution de-risks, with upside skewed to phase-delivery probabilities. Sigma trades at a discount to global lithium peers despite one of the sector's stronger visible growth profiles. Volumes can more than double on a modular expansion path with most enabling infrastructure already built. Phase 1 is operating (~330 ktpa nameplate), Phase 2 adds ~250 ktpa, and Phase 3 adds ~250 ktpa, taking guided installed capacity to ~580 ktpa by end-2027 and ~830 ktpa by end-2028, with the critical path increasingly centered on equipment procurement/assembly and commissioning rather than greenfield permitting/infrastructure.

Capex intensity is best-in-class for new hard-rock capacity, supporting self-funding and limiting dilution risk. Management frames each incremental line at ~US$100 million. Phase 2 and Phase 3 disclosures imply ~US$100–108 million for ~250 ktpa of incremental capacity (i.e., ~US$400–430/t installed), which is structurally advantaged versus peers (~US$1,100/t) once full project scope and contingencies are considered.

Low-cost, high-quality asset base supports solid cash generation even at mid-cycle prices. Sigma sits in the first quartile of the cost curve (above Greenbushes but below most Australian and marginal global supply), providing both downside protection and strong operating leverage as prices recover and volumes scale.

Lithium fundamentals remain supportive, with 2026 the tightest year in J. P. Morgan's cycle view and 2027 the peak price year. J. P. Morgan sees a deficit market through to 2029 (narrowing over time), with demand strength led by energy storage while supply growth still leaves balances tight. J. P. Morgan's team forecasts strong lithium prices, providing meaningful torque to Sigma given its unhedged exposure.

Sigma moves away from "start-up mode" as mining is internalized, throughput volatility declines and the Company addresses past operational issues. The late-2025 pause and shift to an in-house mining model (larger fleet and mine-geometry optimization) directly addresses the key bottleneck that constrained 2025 production. Early 2026 trends point to improving quarterly cadence, lower unit costs and reduced working-capital stress (also explained by higher prices and FCF/ton), supporting a lower risk premium. The operational playbook is becoming simpler, more internalized and providing the foundation for an Overweight thesis.

In addition to its investment thesis, J. P. Morgan highlights several key strengths of Sigma Lithium: Sustainability leadership: J. P. Morgan highlights Sigma Lithium's differentiated operating model, including 100% renewable electricity, dry-stacked tailings, 90% process-water recycling and no hazardous chemicals, alongside a strong safety record.