You got any sources for the claim or are you just referring to the negative impacts the recent pandemic has had on State budgets?
Pretty sure if a state Government really was broke it would be big news and be a big concern for a lot of people.
Offtake agreements come in all shapes and sizes. Some with funding, some with loans for working capital. It's common for an offtake agreement to not include funding.
Also it's been stated that there are NDA's attached to the financing discussions so for all we know LG could have put something up. Guess we will find out soon enough.
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