In a transformative move that could reshape the US lithium supply landscape, Stardust Power has secured a landmark supply agreement with Japanese trading giant Sumitomo Corporation, our sources confirm. The deal commits Stardust to supply a minimum of 20,000 tonnes of lithium carbonate annually from its upcoming Oklahoma refinery, marking a significant step in establishing domestic battery material production capabilities.

The ten-year agreement, which includes an option for a five-year extension, could see annual supply volumes increase to 25,000 tonnes, positioning Stardust as a key player in the rapidly expanding electric vehicle (EV) battery supply chain. Industry insiders familiar with the matter highlight the deal's innovative pricing structure, which will be tied to spot market rates.

Stardust's Muskogee facility, currently under construction at the Southside Industrial Park, is set to become one of America's largest lithium refineries. Initial production capacity is targeted at 25,000 tonnes of lithium carbonate annually, with plans to double output to 50,000 tonnes through the addition of a second production line.

The partnership extends beyond mere supply arrangements, incorporating joint marketing initiatives that leverage Sumitomo's extensive global network. Sumitomo has committed to purchasing technical-grade lithium products during the facility's ramp-up phase, providing Stardust with crucial early-stage revenue streams.

Despite the positive news, Stardust's market performance has been challenging, with shares trading around $1.07 following a 7.1% rise on the announcement, reflecting a market capitalization of around $57 million. According to the media reports, the stock has experienced a dramatic decline of over 90% in the past six months, though this agreement could signal a turning point for the company.

The timing of this partnership is particularly significant as the global demand for battery-grade lithium continues to soar, driven by accelerating EV adoption and renewable energy storage needs. Securing a prestigious partner like Sumitomo could enhance the Stardust's credibility in the highly competitive lithium market.

As the United States of America (USA) pushes to reduce dependency on the foreign battery materials, this agreement represents a crucial step in establishing a robust domestic supply chain. With the Muskogee facility poised to become operational, the Stardust Power appears well-positioned to capitalize on the growing demand for battery-grade lithium, supported by a partnership that could define the future of the United States of America (USA) lithium production.