This is the hard part about building something big and expensive...

This is the hard part about building something big and expensive - you have to give a lot away to achieve it. In doing so, you have to try to minimise the equity that you give away in exchange for 'options' for the other party. That in essence is what this agreement is. NVX running out of money (understandably, equipment is expensive), and LG taking advantage of that in honestly the most maximum way.

In summary:
- NVX issuing 30m shares to LG at a price of $1.60 to be payable only upon acceptance of the first order of SG which won't occur until at least 2026 or a maximum date of June 2028 whichever comes first.
- LG doing joint research with NVX for which LG get a 6yr exclusivity to the products developed (lucky their f*ing massive)
- If research goes well, LG has the right to purchase 50k tonnes over 10 yrs (5k annually) at some point in the future from 2026
- LG will build the battery manufacturing plants in the US that will use SG
- NVX will provide SG if they can and will do their best to meet additional SG orders, in other words, LG will also purchase from others because 5k tonnes SG annually is not much)

What this validates is that NVX have a decent foundation SG synthesis method that LG and potentially others, will enter agreements with them to provide custom versions of it.
Similarly to OpenAI developing ChatGPT (the foundation model), companies will sign agreements for the base product plus their special ingredient/research.
The smaller companies that dont have the funding to add changes to the base product will purchase the base product.

So from this announcement:
Certain:
NVX will issue $30m stock to LG in 2026 at the earliest, 2028 at the latest
Likely:
LG will purchase 50k SG from NVX over a 10yr period (LG really reduce their risk here by the deal being a call option for LG rather than a put option for NVX)
Speculation:
Other large companies may also start to sign developments as the early in a deal you area, the more you can dictate the price. LG have gauranteed NVX share price will be at $1.6 AUD at sometime between 2026 or 2028.