I have been thinking about this preliminary offtake agreement,...

I have been thinking about this preliminary offtake agreement, some have been saying can PA produce lithium? Here's my take on this agreement and if anyone has more knowledge please share. When the 4 parties signed the MOU they completed are completing a DD, wasn't this for production of lithium from brine? Below is a post of an offtake agreement, to me it seems to be more for the purchase of the finished product and financing?

Offtake agreements are important for many companies, but are particularly crucial for those focused on critical and industrial metals. Many of these metals are not sold on the open market, and that makes it harder for producers to offload them.
Generally, offtake agreements are negotiated prior to mine construction; they help assure producers that there is indeed a market for the material they plan to produce. That is beneficial for a number of reasons — most obviously, it means the company won’t have to worry about being able to sell the metal it produces.
Additionally, having an offtake agreement tends to make it easier for producers to secure the necessary financing to move forward with mine construction. Lenders and investors are more likely to have confidence in a project if they know that companies are already lining up to buy the metal it will produce.
Buyers will also sometimes provide producers with money to advance their projects when an offtake agreement is created. However, that is not always the case.
Of course, offtake agreements can also be beneficial for buyers. Offtake agreements allow buyers to purchase metal at a particular price. This can function as a hedge against future price changes if demand outweighs supply. Offtake agreements also guarantee that buyers will receive the product they are purchasing at a specific dat