Stardust Power Locks In Long-Term North American Lithium Supply with Prairie Lithium Deal
Securing Reliable Lithium Feedstock: Agreement Lays Foundation for Scalable Growth
Stardust Power (NASDAQ: SDST) has taken a major step in cementing its role as a critical supplier for North America's battery supply chain. On October 21, the company announced it had signed a Letter of Intent with Prairie Lithium to source up to 6,000 metric tons per year of lithium carbonate equivalent (LCE) in the form of lithium chloride. The lithium will be supplied from the Prairie Lithium Project in Saskatchewan, Canada, and processed at Stardust’s new Muskogee, Oklahoma facility—laying the groundwork for scalable, secure lithium production.
Multi-Year Supply Structure Adds Long-Term Security
The agreement spans an initial six-year term with options to extend for up to 18 years. Initial deliveries, set for 2027, will be routed through the Port of Muskogee’s Free Trade Zone, leveraging key road, rail, and water access—offering tariff exemptions and reduced import duties. The Prairie Lithium Project’s current preliminary production estimate is up to 17,000 metric tons per annum, providing flexibility for expansion as Stardust ramps up operations. Early shipments will build inventory reserves, helping commission and scale the facility smoothly.
| Agreement Term | Annual Volume (LCE) | Start Date | Supply Source | Refinery Location |
|---|---|---|---|---|
| 6 years (plus 2 x 6-year extensions) | 6,000 metric tons (scalable up) | 2027 (targeted) | Prairie Lithium Project, Saskatchewan | Muskogee, Oklahoma |
Supply Agreement Strengthens Stardust’s Strategic Position and Financing Prospects
For Stardust Power, securing a reliable, North American-based lithium source is a strategic move as it advances toward a final investment decision and the start of major construction. The ability to process multiple lithium chloride sources in its central refinery adds resilience, positioning Stardust as an aggregation and refining hub. With this deal, the company can demonstrate to investors and partners that feedstock risk is mitigated—an essential milestone to unlocking further financing, including debt and equity, and moving closer to full-scale operations.
Sustainability, Flexibility, and North American Resilience
Prairie Lithium’s resource comes with sustainability advantages, aiming to minimize land, water, and waste impacts while leveraging existing infrastructure in a region known for oil and gas production. The refinery’s ability to aggregate multiple lithium sources supports future scalability and resilience for North America’s clean energy ambitions.
Key Takeaways for Investors and Industry Watchers
This agreement propels Stardust Power into a leadership position in the emerging North American battery-grade lithium market. The locked-in, multi-year supply with built-in expansion potential provides operational confidence and increases the attractiveness of Stardust as a financing candidate. With advanced permitting and construction already underway in Muskogee, the company’s progress signals both strong execution and a pivotal step toward ensuring reliable, homegrown battery material supply for the continent’s growing electric vehicle and energy storage markets.
| Milestone | Status |
|---|---|
| Supply Agreement Signed | Executed (LOI stage) |
| Site Groundbreaking | Completed |
| Permitting | Advanced Stage |
| Initial Offtake Agreement | In Place |
For those tracking the lithium sector, Stardust Power’s Prairie Lithium supply deal is a pivotal marker: one that strengthens the U.S. lithium value chain and signals momentum for domestic battery material independence in the years ahead.
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