Why Sigma Lithium Stock Ran Higher Today
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By Rich Smith – Dec 17, 2025 at 10:48AM ESTKey PointsChina is canceling old lithium mining licenses, mostly for non-operational mines.Chinese lithium prices spiked on the news, pushing lithium stocks higher today.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: SGMLSigma LithiumMarket Cap$1.1BToday's Changeangle-down(7.33%) $0.75Current Price$10.98Price as of December 17, 2025 at 11:25 AM ETA future deficit in lithium supply just got a little more likely.Shares of Sigma Lithium (SGML +7.33%), the Brazilian hard-rock lithium miner, jumped 10.6% through 10:25 a.m. ET this morning -- and China is the reason. The Bureau of Natural Resources in Yichun, Jiangxi Province, plans to cancel 27 mining permits in January. Lithium prices in China reacted sharply to the news, rising 7.6%, and the price bump is having knock-on effects among lithium stocks worldwide. Image source: Getty Images. Big trouble (with lithium) in China Mining.com explains that "all of the licences had already expired, some more than a decade ago, and most were registered for ceramic clay or limestone mining." As such, you might not expect the licenses' cancellation to have much effect on lithium production rates or lithium supply. This seems more a matter of cleaning up old paperwork than a move with real economic impact. Indeed, one analyst is quoted as confirming that "the licence cancellations would have little impact on supply, as none of the revoked permits covered operating mines." But the fact that the licenses remained active held the potential for mining to be resumed at any of the sites, legally. That can't happen now unless the licenses are officially renewed, and this could have an impact on lithium supply.Advertisement This is the reason lithium investors are getting excited: The potential for a future supply crunch to create a deficit of the white metal, which will lift prices in the future. ExpandNASDAQ: SGMLSigma LithiumToday's Change(7.33%) $0.75Current Price$10.98Key Data PointsMarket Cap$1.1BDay's Range$10.82 - $12.1652wk Range$4.25 - $13.40Volume3.5MAvg Vol6.1MGross Margin14.63% Is Sigma Lithium stock a buy? That's a logical take, so far as it goes. Near term, however, it doesn't change the fact that Sigma Lithium is losing money and burning cash -- $33 million in net losses and $24 million in negative free cash flow over the last 12 months. Until these numbers improve, it's hard for me to call Sigma Lithium stock a "buy."About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolRead NextDec 12, 2025 •By Neha ChamariaWhy Sigma Lithium Stock Surged 26% This Week And Could Soar in 2026Dec 9, 2025 •By Neha ChamariaWhy Sigma Lithium Stock Surged 15% Today and Has Doubled in 1 MonthNov 21, 2025 •By Billy DubersteinWhy Sigma Lithium Rallied This WeekNov 17, 2025 •By Rich SmithWhy Sigma Lithium Stock Exploded Higher TodayOct 5, 2023 •By Rich SmithWhy Sigma Lithium Stock Sank 10 Percent This MorningFeb 21, 2023 •By Rich SmithWhy Sigma Lithium Stock Popped on Its Tesla News