Sigma Lithium stock dropped 12% after a Brazilian court suspended operations at the company's sole producing mine, marking the third operational halt in four months.
The S&P 500 was down 0.3% during the same premarket session as Sigma Lithium's decline.
The Dow Jones declined 0.8% in the premarket session alongside Sigma Lithium's fall.
The Nasdaq slipped 0.1% during the premarket period when Sigma Lithium shares dropped.
Sigma Lithium shares tumbled nearly 12% in premarket trading following a Brazilian court order suspending environmental permits and operations at the Grota do Cirilo complex. The injunction stems from a lawsuit alleging the company failed to consult with the nearby Baú Quilombola community as required by law.
The court issued an injunction because the Grota do Cirilo mine is located within 8 kilometres of the Baú Quilombola community, triggering a mandatory consultation requirement under Brazilian law that the plaintiffs claim was ignored.