A Minas Gerais Court of Appeal overturned a lower court ruling that had contemplated a potential US$10 million legal collateral requirement against Sigma Lithium, removing a significant legal overhang from the company. The court's decision was supported by 12 months of independent environmental monitoring data showing dust levels 560% better than recommended environmental standards. This ruling is directly material for Sigma Lithium's Phase 2 expansion plans, which aim to nearly double production capacity to 520,000 tonnes of lithium oxide concentrate. The legal resolution eliminates a contingent liability that had created uncertainty for investors evaluating the company's balance sheet and capital allocation capacity.