Understanding the domestic buyers of critical minerals
Notes:
* IDIQ stockpile contracts: commit the government to a spending ceiling as opposed to a committed volume of goods, in which orders are placed throughout the contract term instead of all at once.
† Anchoring offtake agreement: often the first agreement signed, this contract establishes a project’s credibility to the rest of the market.
‡ Tenor-matched: tenor-matched offtake agreements (can be seen in anchoring offtake agreements) are matched to the debt they support, or the volume and tenor are sized to meet loan repayment requirements (e.g., GM/Thacker Pass lengthening their offtake agreement from 10 to 20 years to meet DOE loan requirements)
* IDIQ stockpile contracts: commit the government to a spending ceiling as opposed to a committed volume of goods, in which orders are placed throughout the contract term instead of all at once.
† Anchoring offtake agreement: often the first agreement signed, this contract establishes a project’s credibility to the rest of the market.
‡ Tenor-matched: tenor-matched offtake agreements (can be seen in anchoring offtake agreements) are matched to the debt they support, or the volume and tenor are sized to meet loan repayment requirements (e.g., GM/Thacker Pass lengthening their offtake agreement from 10 to 20 years to meet DOE loan requirements)
Source: Company announcements, S&P
