Stardust Power Inc. (NASDAQ:SDST) announced it entered a non-binding letter of intent with Prairie Lithium Limited for the supply of 6,000 metric tons per annum of lithium carbonate equivalent in the form of lithium chloride. This agreement supports Stardust Power's lithium processing facility in Muskogee, Oklahoma, and is crucial for its upcoming Final Investment Decision and construction start.
The lithium chloride will be sourced from the Prairie Lithium Project in Saskatchewan, Canada, and will serve as feedstock for Stardust Power's facility. The agreement spans an initial six-year term, with two six-year extension options, providing up to 18 years of potential supply. Initial deliveries are scheduled to begin as early as 2027, with volumes scaling to 6,000 metric tons per annum, and the opportunity for additional volumes as Prairie Lithium's project identifies up to 17,000 metric tons per annum production capacity.
Pablo Cortegoso, Chief Technical Officer and Co-Founder of Stardust Power, stated that securing reliable, high-quality feedstock is critical for scaling lithium refining operations and aligns with the company's commitment to a secure and sustainable North American supply chain. Paul Lloyd, Managing Director of Prairie Lithium, highlighted the partnership's role in supplying high-quality lithium feedstock for the U.S. market and supporting a clean energy supply chain. The feedstock will be delivered to the Port of Muskogee's Free Trade Zone, potentially offering tariff exemptions and reduced import duties.
This agreement aims to accelerate Stardust Power's business model, strengthen customer engagement, and de-risk the development of its Phase 1 operations. The company's strategy involves a large central refinery engineered to process multiple approved lithium chloride inputs. Stardust Power views this agreement as significantly strengthening its commercial position, unlocking access to new financing avenues, and serving as a major de-risking step towards full-scale construction and commissioning.
