Sigma Lithium Corporation announced the signing of a binding term sheet for an offtake agreement on a "take or pay" basis (the "Offtake") for the sale of 6% battery-grade high purity and environmentally sustainable lithium concentrate ("Battery Grade Sustainable Lithium Concentrate") to LG Energy Solution Ltd. ("LGES"), one of the world's largest manufacturers of advanced lithium-ion batteries for electric vehicles. The six-year LGES Offtake for Battery Grade Sustainable Lithium Concentrate scales from 60,000 tons per year in 2023 to 100,000 tons per year from 2024 to 2027 ("Guaranteed Take-or-Pay Quantity") subject to Sigma Lithium and LGES executing a mutually acceptable definitive documentation to implement the Offtake. Sigma Lithium and LGES also agreed to negotiate each year, starting in 2022, an additional optional supply of Battery Grade Sustainable Lithium ("Optional Offtake Quantity"), not otherwise committed in other Sigma Lithium offtake arrangements. The purchase price for the Battery Grade Sustainable Lithium Concentrate under the Offtake will be linked to market prices for the high purity lithium hydroxide during the term of the Offtake. The Offtake is intended to be legally binding on both Sigma Lithium and LGES, and is subject to, among other things, completion of the negotiation of definitive written agreement(s), which are to be consistent with the agreed terms contained in the binding term sheet.