Stardust Power to refine lithium in Oklahoma
Stardust Power is described as a “development stage American manufacturer” and wants to apply direct lithium extraction (DLE) technology to extract the silvery metal from brines. While the company claims it “enjoys a diversified supply of lithium from American brine sources”, it did not go into further detail.
However, its founder and CEO, Roshan Pujari, added in a somewhat mixed message that he expected to work with oil and gas producers. Speaking to the media, Pujari noted that the US has many available lithium brine sources, mainly through said sector, where brines are already in production via hydraulic fracturing.
“We are working with oil and gas producers, as well as lithium asset developers, and we’re also investing in developing assets ourselves,” the CEO said in the interview with Fastmarkets.
“These sources are in the US and Canada, although [Stardust Power] would consider a higher grade or technical grade from Argentina if needed. But we’re really focused on North American sources and, most importantly, Inflation Reduction Act-compliant sources,” he added.
In Oklahoma, the company says it is eligible to receive up to $257 million in state and federal incentives for the build-out of the lithium refinery.
The factory will be able to produce up to 50,000 tonnes of battery-grade lithium per year, and Stardust expects to break ground in the first half of 2024.
Other incentives to build in Oklahoma cited by Stardust were the state’s central US location, facilitating lithium logistics and supporting the refining operations.
Moreover, Muskogee is an inland port town that allows shipping along the Mississippi River system to 20 US states and seaports via the Gulf of Mexico. It is also connected to the continental highway and rail system.
Stardust added that a skilled workforce trained in oil and gas engineering was another critical factor.
While the company has not disclosed its exact investment, state officials speak of over a billion dollars, and the company made a financing deal of nearly half a billion last year.
“Stardust Power’s more than a billion-dollar investment is a testament to Oklahoma’s ‘all-of-the-above’ approach to energy and our focus on workforce development,” said Oklahoma Governor Kevin Stitt. “As we see more energy manufacturers moving to our state, due in part to our competitive, performance-based incentives, Stardust Power’s new lithium refinery will create hundreds of new jobs while cementing Oklahoma’s place as the best state in the nation for critical mineral manufacturing.”
The total value of the incentive package will hinge on Stardust Power achieving certain milestones around job creation and local investment, including new machinery, equipment and manufacturing.
“When fully operational, our new lithium refinery will both speed America’s energy transition and boost Oklahoma’s local economy, creating significant new investment and employment opportunities,” said Pujari. He added that there was no large-scale refinery for battery-grade lithium in the United States, “exposing the country to undue national security and supply chain risk”.
Stardust Power aims to become a publicly traded company on the Nasdaq under the ticker symbol “SDST” via a planned SPAC merger with Global Partner Acquisition Company II this year.
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