Under former managing director Steve Promnitz, Lake signed agreements earlier this year to supply a combined 50,000 tonnes per annum of lithium carbonate equivalent to US automaker Ford and Japan's Hanwa Corporation from its Kachi brine project in Argentina.
His replacement, David Dickson, has just signed two additional offtake and equity agreements, first with Sprott-backed trader WMC Energy last week, and one this morning for a further 25,000tpa with SK On, part of South Korea's second largest conglomerate SK Group.
That's 100,000tpa of potential offtake deals for a project that is only expected to produce 50,000tpa.
SK On has agreed to take a slice of LCE production, but also take a 10% strategic investment in Lake in return for around $1 per share, lower than WMC's premium offer of $1.20 per share for the same stake.
Lake executive chair Stu Crow described SK On as "one of the world's pre-eminent lithium-ion battery producers with a major growing presence in the North American market".
SK On's offtake deal would last for five years, and would be priced based on an agreed market formula. WMC's agreement was for 10 years.
Today's agreement also allows SK On to consider participating in Lake's other less advanced projects in the Lithium Triangle.
While it may seem logical that Lake is considering expanding Kachi production, there are questions about if that is even physically possible, and it explicitly described SK On's potential offtake as 50% of Kachi.
It may simply be indicative of the fierce scramble for global demand for lithium supplies.
The conditions of the SK On deal are similar to WMC's: a successful definitive feasibility study, financial due diligence, and product specifications, and a successful run of Lilac Solution's direct extraction technology at Kachi.
The demonstration plant is being commissioned and is expected to run for about 1000 hours.
Lake and Lilac are engaged in a dispute over deadlines for the plant's milestones but continue to work together, although Lake claims certain buyback rights.
Lilac, which has been working with Lake since 2018, has a staged 25% earn-in based on supplying staff and the demonstration plant, and the ability to cover up to US$50 million in construction costs for the development.
Canaccord Genuity analyst Reg Spencer was one of the voices last week asking for, and not getting, clarity around the fates of Ford and Hanwa, and the dispute.
While waiting on the plant to produce its first lithium carbonate to de-risk the process, he slashed his price target from $1.65 to $1.40 per share based on uncertainty around offtake and what it might mean for project financing.
He retained his speculate buy recommendation.
Lake remains well funded with cash of around $173 million.
Lake shares, which have traded between 53c and $2.65 over the past year, were up 2% this morning to $1.01, valuing the company at $1.4 billion.