Strategic Partner at the Project Level, page-2

This is a great question and one that unfortunately probably can’t be answered, because we simply don’t have the details.

I agree what your saying appears to be true, but if I may let me play devils advocate.

Why I think this approach, if it’s as you suggest would be extremely difficult to pull off.

This would be like buying your electricity 2-4 years in advance, from a solar company that is going to use the money you give it to build a wind farm to supply power. It’s very speculative. Also if the solar farm is built, you will just get the amount you paid in advance at cost price, but when that money is used up, you need to get inline with everyone else and bid to get a share of this power. Your accepting a ton of risk here.

I feel the car companies are going to really shy away from this deal, as the risk/ reward ratio is skewed. They are funding what 25% of the company and for all that risk, they get to buy the product at cost, only to the amount they contributed to actually build the mine??

Can anyone here name any other deal that has been signed that mimics this deal? Is it common place? If so please point me in the direction of the company that has recently announced this.

I think a deal will potentially be done, but what you’re proposing I think won’t happen.