Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How One Buyer Secured Critical Materials Through Offtake Agreements
Episode 22 of The Buyer's Side explores offtake agreements—a procurement strategy where buyers commit to purchasing a fixed volume of a supplier's future output in exchange for priority access and stable pricing. Lucas and Luna break down a real-world example: how a mid-sized battery manufacturer used a five-year offtake agreement with a lithium miner to lock in supply during a 2023-2024 shortage, avoiding the spot-market price spikes that crippled competitors. They walk through the negotiation leverage these agreements create, the risks—including overcommitment and price floors—and…
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