yeah the M&A premium is something to factor in. There aren't a...

yeah the M&A premium is something to factor in. There aren't a lot of good quality, large-scale spod resources available in North America.

Tbh I think a "takeover" is more likely to happen gradually, so the initial reward for committing to a strategic partner may include terms like facilitating (potentially low-interest) debt financing, and/or an offtake agreement with floor price, etc.

Potential Korean partners, in particular, may be in a position through the Korean govt to assist with debt financing. 29bn USD over the next five years is HUGE and would presumably assist them with the establishment of a conversion facility in Quebec. The article (below) also notes 1.15bn USD is specifically "to help firms secure minerals and expand their production overseas".

https://financialpost.com/pmn/business-pmn/south-korea-offers-29-billion-in-aid-to-battery-makers-amid-metals-war



"President Yoon Suk Yeol’s administration wants to boost competitiveness of the nation’s battery industry, from mining to recycling, according to an e-mailed statement from the finance ministry Wednesday. While South Korea’s three top battery makers — LG Energy Solution Ltd., Samsung SDI Co. and SK On Co. — control nearly half the global market for EV batteries outside of China, diversifying supply chains and “internalizing” raw materials is urgent, the ministry said.

The financial aid will take the form of loans, credit guarantees, lower borrowing rates and insurance premiums for investment in manufacturing facilities in North America in order to help companies receive tax breaks from US President Joe Biden’s Inflation Reduction Act, the ministry said. Korea’s government also plans to raise a 1.5 trillion won fund to help firms secure minerals and expand their production overseas."