Based on my discussions with LAC management ...

The offtake price for GM is linked to a market index, with a "graduated" discount. There is a floor. There is no ceiling, but the discount increases as the market index increases.

The market index is for contract prices outside of China. That is, it does not include the China spot price (although in my view, China spot might have an marginal/indirect impact on ex China contract prices).

I would suggest looking less at the China spot price, and instead look at the prices being reported by SQM, ALB, LTHM and Allkem. There is a significant difference.