LKE towards TOP-5, page-363

Lithium price will continue to increase in 2022 and we will see a new valuation for lithium companies, including LKE, by end February or early March.

We also need to understand, LKE to have a Tier-1 offtake partner, is part of 70% project funding requirement and it need not be for 100% of 25,500 or 51,000 expansion case. If one or two Tier-1 offtake partners agree for rise and fall price mechanism, then IMO long term contract price would be more than it’s PFS pricing and probably higher than $20,000.

It would be interesting to see how many big players (SQM, ALB) have signed rise and fall price mechanism with their offtake partners? I reckon none because it is a new trend and if LKE succeeds, it will be a significant benefit to LKE’s cash flow, future expansion of other projects and shareholders.

Further, there is no requirement to commit 100% production to offtake partners, if demand for lithium is to exceed supply. There will always be demand for battery or higher quality (99.97% purity) lithium and LKE could still possibly attract close to spot pricing on those uncommitted lithium supply in the open market. I am confident Steve and Stu must be working on best % mix of offtake vs uncommitted supply for LKE.