Ann: E25 and General Motors Sign Offtake & Funding Agreements, page-27

Another key thing is that GM needs this a lot more than they are letting on.

They plan to produce over 1m EV's per year in America. Lets assume 80% of those meet the IRA payment criteria and sorry I don't have a robust reason for choosing 80%. Substitute 50% or 60% of you are more conservative. The IRA provides for compliant vehicles to receive a $7,500/vehicle discount on the price.

Creating a compliant supply chain will enable GM's EV customers to access $6b of IRA credits per year. GM is unlikely to be able to increase the price of its vehicles and sell them in the same quantities if they tried to increase every vehicle by $7,500. EV's imported into the USA won't get this credit. With $6b/yr reasons to get an eligible supply chain, they will be pushing their suppliers hard to complete on-time. In an unusual flip, on-budget is less important than on-time because even losing IRA credits for 2 months would cost them $1b in credits for purchasing customers.

I'm not sure what the ultimate solution will be around financing, but I suspect it will be solved (and quickly), even if its GM pumping in equity or a bigger loan. A takeover must be a genuine prospect with E25 having contracts with two tier1 automakers.

While only those following E25 closely would have known about the news yesterday, today its in the wider media including an AFR article:

US car giant GM loans $128m to ASX battery play Element 25 (copyright link)
https://www.copyright link/companies/mining/us-car-giant-gm-loans-128m-to-asx-battery-play-20230626-p5djgv