When it comes to cleantech scaleups, there are very few valuable resources available. Extantia is one of the rare ones, providing a treasure trove of insights into scaling, FOAKs, and NOAKs. Yair Reem’s latest post introduces the Offtake Pyramid, inspired by Maslow’s hierarchy of needs. But does it work in practice?
Source: Extantia
From my experience, the reality was a bit different. I had a TRL 9 product—a lithium-ion cell—but I ended up with a conditional offtake. Why? The auto manufacturer was already sourcing cells from CATL, and they wanted an opt-out clause in case our product didn’t meet expectations. At the same time, I needed that offtake to justify building a 4 GWh battery cell plant.
The kicker? Even the client wasn’t sure they’d manufacture the number of EVs they had announced (EU car manufacturers, anyone?)! So, both sides had conditional terms—if our cells delivered as promised, they would commit to a certain volume. And our price was tied to that volume.
🛠 Key takeaway? The pyramid is a great tool for startups at TRL 4-5, where the first steps toward securing offtakes are critical. It shows what you can expect when you progress along the TRL ladder. But what happens when you’re at TRL 8 or 9? Should you go straight for a firm order?
As much as you might wish it, it is not always on the cards. If that’s your case, feel free to reach out. You are already on top of the pyramid and there is a lot of work to do.