Why Shares of Sigma Lithium Are Falling Today

Sigma Lithium stock slumped on Thursday, and it’s failing to recover.

The company received a downgrade from Canaccord yesterday.

After stopping operations at an asset in Brazil, Sigma Lithium is facing opposition in resuming activities.

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Falling more than 14% yesterday from where it closed on Wednesday, Sigma Lithium (NASDAQ: SGML) seems likely to extend its downward trajectory to end the week. With shares of the lithium producer downgraded yesterday afternoon and the company encountering challenges in restarting operations at its Brazilian mine, investors seem to have found sufficient motivation to move the stock out of their portfolios.

As of 11:41 a.m. ET, Sigma Lithium shares are trading 12.9% lower.

Taking a more bearish stance, Canaccord downgraded Sigma Lithium to hold from buy yesterday. The increasingly pessimistic position echoes the negative outlook that Bank of America also shared yesterday, when it assigned a $14 price target to Sigma Lithium stock.

Another factor contributing to today’s sell-off is yesterday’s Reuters article reporting that Brazil’s Labor Ministry has shut down three waste piles at Sigma Lithium’s Grota do Cirilo asset in Minas Gerais. Citing documents it had seen, Reuters reported that the Labor Ministry based its decision on the belief that the waste piles pose a “grave and imminent” risk to workers and community members.

Sigma Lithium announced that it was pausing operations at Mine 1, Grota do Cirilo, in the third quarter 2025.

Shareholders are right to remove Sigma Lithium from their portfolios due to the challenges the company is facing in restarting operations at Grota do Cirilo. In November 2025, the company projected that mining operations would resume by the end of the month, ramping up into the first quarter of 2026. Until the uncertainty around the start-up of operations at Grota do Cirilo is resolved, investors will want to consider other lithium stocks that represent less risk.

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Bank of America is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Shares of Sigma Lithium Are Falling Today was originally published by The Motley Fool