Here's the Latest Scoop for Muskogee's Lithium Refinery

The Stardust Power refinery, aimed to become one of the largest battery-grade lithium refining facilities in the United States next to Tesla's Texas refinery, was officially announced on January 11, 2024. This announcement marked a significant step for the company, which aims to bolster the electric vehicle (EV) industry by producing up to 50,000 metric tons of lithium annually at its site in the Southside Industrial Park in Muskogee.

Originally, the groundbreaking for the refinery was expected to occur in the first half of 2024. However, as of November 18, 2024, that milestone has not yet been reached, leading to questions about the timeline and progress of the project. Delays in such large-scale developments can arise from various factors, potentially including regulatory approvals to financing arrangements and other factors.

Latest Developments

Recent updates from Stardust Power indicate that the company is actively working on securing the necessary financing and partnerships to move forward. On October 31, 2024, Stardust Power announced that it had engaged MUFG Bank as its lead financial advisor for the refinery project. This partnership is expected to facilitate the financial structuring necessary for the refinery's construction.

In their Q3 2024 financial results released on November 13, 2024, Stardust Power highlighted several operational milestones. Notably, they completed a business combination with Global Partner Acquisition Corp II, which allowed them to list on the Nasdaq (SDST and SDSTW, respectfully). The company also appointed new senior management to strengthen its leadership team, indicating a commitment to advancing the project.

Image from Apple Stocks

Image from Apple Stocks

Additionally, Stardust Power has entered into a 90-day exclusivity period with KMX Technologies to negotiate the use of lithium brine concentration technology, which could enhance the efficiency of their refining process4. This technological partnership is crucial as the company prepares for the final investment decision that will kickstart construction.

Financial Outlook

As of September 30, 2024, Stardust Power reported approximately $1.6 million in cash and no long-term debt, although they recorded a net loss of $10 million for the quarter. The company has also established a common stock purchase agreement with B. Riley Principal Capital, allowing them to raise up to $50 million through newly issued shares, which will support their ongoing operational and developmental costs.

While the Stardust Power refinery in Muskogee holds great promise for the lithium market and the EV industry, the path to groundbreaking has encountered delays, which is not uncommon for large projects like this. With strategic financial partnerships and a clear operational plan, Stardust Power is positioning itself to overcome these challenges. Oklahoma's workforce, with its strong background in oil and gas, extensive blue-collar experience, and robust trade school programs and universities position the state as an ideal hub for the Stardust Power refinery and similar ventures, promising a bright future for both the local economy and the energy sector.