US Stock Market Move | Lithium mining stocks fell, Sigma Lithium (SGML.US) dropped more than 9%

On Friday, lithium concept stocks fell. As of the time of writing, Sigma Lithium (SGML.US) dropped by over 9%, Lithium Americas (LAC.US) dropped by over 5%, and Albemarle (ALB.US) dropped by over 6.5%. On the news front, the Brazilian Ministry of Labor recently ordered the closure of three waste dumps at Sigma Lithium's flagship lithium mining project in Minas Gerais state, citing "serious and imminent risks" to workers and the local community. The lithium mine is Brazil's largest project, with an annual production capacity of approximately 270,000 tons of lithium concentrate. It has been shut down since last October, and production resumption has been repeatedly hindered. Sigma has denied the existence of safety hazards in a statement, stating that the closed waste dumps only contain soil and no pollutants, and the restrictions will not affect its overall operations and resumption plans. However, the Ministry of Labor pointed out that if the waste dumps were to collapse, nearby residences could be buried or the waste could flow into the Rio Piracicaba river, and the risks still exist. Due to the lack of clarity on the resumption date, Bank of America Corp downgraded Sigma Lithium's rating last week. The Ministry of Labor also rejected Sigma's appeal to lift the closure order, requesting them to submit corrective documents to prove that the issues have been resolved.