Stardust Power Secures 10-Year Lithium Supply Deal with Sumitomo

Stardust Power

Sumitomo's US Subsidiary Signs Agreement for Up to 25,000 Metric Tonnes of Lithium Carbonate Annually

In a significant move for the lithium supply chain, Sumitomo's US subsidiary has entered a 10-year nonbinding agreement with Stardust Power, a prominent lithium producer. The deal will see Sumitomo secure up to 25,000 metric tonnes per year (mt/yr) of lithium carbonate, a vital component for battery production, with an initial volume of 20,000 mt/yr.

Details of the Agreement and Supply Terms

Under the terms of the agreement, Sumitomo will initially receive 20,000 tonnes of lithium carbonate annually from Stardust's first production line. The volume could rise to 25,000 tonnes per year, depending on production capacity. Stardust began construction of its refinery in Muskogee, Oklahoma, in January, signaling that the first phase of production is underway.

The contract will come into effect once Stardust’s production meets the necessary qualifications for sale to Sumitomo's customers. Sumitomo also holds the option to extend the agreement for an additional five years, contingent on mutual agreement between the two companies.

Pricing and Future Prospects for Lithium Supply

The pricing for the lithium carbonate will be based on spot market rates, as reported by price agencies, with potential adjustments to meet specific customer requirements. Additionally, before producing battery-grade lithium, Stardust will supply technical-grade lithium in annual volumes or up to Stardust's production capabilities, ensuring a steady flow of material during the transition period.

This deal not only strengthens the supply chain for lithium, crucial in electric vehicle and energy storage applications, but also positions both companies for future success in the growing global market for lithium-based products.

Stardust Lithium Chloride Feedstock Agreement Supports Oklahoma Refinery Plan

Stardust Power

Stardust lithium chloride feedstock agreement has strengthened the company’s plan to supply its Muskogee, Oklahoma refinery with domestic lithium brine material for battery-grade lithium carbonate production. The deal covers lithium chloride feedstock from a California brine project, with initial deliveries scheduled for the first half of 2028.

The agreement could provide up to 15,000 t/yr of lithium carbonate equivalent. Stardust Power has not yet disclosed the specific project name or location, saying those details will follow after a definitive agreement is signed.

Stardust lithium chloride feedstock agreement is strategically important because the company’s Muskogee refinery is planned for up to 50,000 t/yr of LCE capacity. Securing feedstock is one of the most important requirements for any lithium conversion project, especially as the US tries to build more domestic battery materials capacity.

California Brine Supply Adds Domestic Feedstock Option

The feedstock will come from a lithium brine project in California, making the agreement part of a wider US push to connect brine resources with domestic refining. California’s Salton Sea region has become one of the most closely watched lithium extraction zones in North America.

Companies active in the region include Berkshire Hathaway Energy Renewables, EnergySource and Controlled Thermal Resources. Based on expected integration and potential volume, Controlled Thermal Resources is considered the most likely supplier.

This matters because lithium chloride from brine projects can become an important input for downstream lithium carbonate production. If direct lithium extraction and brine processing projects scale successfully, they could reduce US dependence on imported lithium chemicals.

The timing remains important. Deliveries are not expected until 2028, which means Stardust still needs to manage project development, financing, permitting, customer qualification and feedstock conversion before commercial output can be secured.

Muskogee Refinery Builds a Broader Lithium Supply Network

Stardust’s Muskogee refinery is planned to produce battery-grade lithium carbonate, a key material for cathode production and lithium-ion batteries. The project is designed for up to 50,000 t/yr of LCE capacity, making feedstock diversification essential.

The California agreement adds to Stardust’s existing feedstock network. Other partners include Prairie Lithium in Canada and Mandrake Resources in Utah, giving the company multiple potential raw material streams.

The company also has a non-binding offtake agreement with Sumitomo for up to 25,000 t/yr of LCE over 10 years. That agreement gives Stardust a potential downstream sales channel, but commercial execution will depend on turning feedstock agreements into qualified battery-grade production.

For the US lithium supply chain, the project reflects a broader challenge. Domestic refinery announcements are increasing, but long-term success depends on reliable brine supply, conversion technology, customer qualification and competitive production costs.

The Metalnomist Commentary

Stardust’s agreement shows that lithium refining projects are only as strong as their feedstock base. The Muskogee refinery could become a meaningful US lithium carbonate platform, but its real test will be converting domestic brine supply into bankable, battery-grade output.