Stardust Power to Supply 20,000 Tonnes of Lithium Carbonate Annually to Sumitomo

Stardust Power announced a supply agreement with Japan’s Sumitomo Corporation for at least 20,000 tonnes of lithium carbonate per year once its refinery in Oklahoma begins production. The initial term of the agreement is 10 years, starting from the first qualification of Stardust’s lithium carbonate product for Sumitomo’s customers, with the option to extend by five years and increase annual deliveries to 25,000 tonnes.

The pricing structure will be based on spot market prices published by Fastmarkets or another mutually recognized price reporting agency. The companies have agreed to adjust pricing to accommodate specific customers as needed.

Stardust recently commenced construction of its first battery-grade lithium refinery at the Southside Industrial Park in Muskogee, Oklahoma. The facility will have an initial production capacity of 25,000 tonnes, with plans to expand to 50,000 tonnes after a second production line is introduced.

The agreement also includes joint marketing efforts to promote lithium carbonate production. Sumitomo has committed to a minimum level of marketing activities, with specifics to be outlined in the final agreement. Before Stardust achieves battery-grade lithium that meets end-user specifications, Sumitomo will purchase technical-grade lithium products at spot market prices, either matching Stardust’s production or adhering to agreed annual quantities.

Following the announcement, Stardust Power’s shares rose 7.1% to $1.07 in New York, giving the company a market capitalization of $57 million. Despite this gain, the stock has declined over 90% in the past six months.