8-K: Stardust Power Signs Lithium Supply Letter of Intent

Stardust Power Inc. has entered into a non-binding Letter of Intent to secure up to 15,000 metric tons per annum of lithium chloride for its Muskogee refinery.

Summary

• Stardust Power Inc. announced on April 13, 2026, that it has signed a non-binding Letter of Intent (LOI) with a strategic partner for the supply of up to 15,000 metric tons per annum of lithium carbonate equivalent (LCE) in the form of lithium chloride.
• This agreement is a significant step towards securing U.S.-based feedstock for the Company's Muskogee, Oklahoma refinery, which is advancing towards construction.
• Initial deliveries are anticipated to commence in the first half of 2028, with the feedstock to be delivered to the Oklahoma facility.
• The LOI grants Stardust Power the option to purchase additional volumes at its discretion.
• This move aligns with Stardust Power's strategy to establish a diversified and scalable lithium chloride supply chain to support its refining operations.
• The company has also made progress on its Muskogee refinery, including completing the Front-End Loading 3 (FEL-3) engineering study and obtaining its air quality construction permit.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a cautiously optimistic development due to the LOI for feedstock, but tempered by significant risks including the non-binding nature of the agreement and substantial doubt about the company's ability to continue as a going concern.

Positives

• Secures a potential supply of up to 15,000 metric tons per annum of lithium carbonate equivalent (LCE) in the form of lithium chloride.
• Represents a key step in securing U.S.-based feedstock for the Muskogee refinery.
• Advances the company's strategy to expand its domestic feedstock pipeline.
• Initial deliveries are contemplated beginning in the first half of 2028.
• Provides Stardust Power the right to purchase additional volumes at its discretion.
• Strengthens the company's supply pipeline alongside key project development milestones.
• Muskogee refinery project has completed FEL-3 engineering study and received its air quality construction permit.
• The refinery is strategically located with proximity to the Port of Muskogees Free Trade Zone and established transportation access.

Negatives

• The Letter of Intent (LOI) is non-binding and subject to further due diligence.
• There is no certainty that a definitive agreement will be executed.
• The filing mentions substantial doubt regarding the Company's ability to continue as a going concern and the need to raise capital in the near term.

Risks

• The LOI is non-binding and subject to further due diligence and the execution of a definitive agreement, with no certainty of execution.
• The company faces substantial doubt regarding its ability to continue as a going concern.
• The company requires substantial additional financing to execute its business plan and may face challenges accessing capital markets.
• Risks related to competition, managing growth profitably, and retaining key personnel.
• Changes in laws and regulations affecting the business.
• The company's continued listing on the Nasdaq.
• Potential volatility in securities prices due to sales, debt issuance, or warrant exercises.

Future Outlook

The LOI is a step towards securing feedstock for the Muskogee refinery, with initial deliveries expected in the first half of 2028. The company is advancing its refinery development, having completed engineering studies and obtained a construction permit. However, the filing also notes substantial doubt regarding the company's ability to continue as a going concern and the need for near-term capital raises.

Management Comments

• "Securing American sourced lithium chloride aligned with our phased ramp-up reflects the strength of our hub and spoke strategy," said Roshan Pujari, Founder and Chief Executive Officer of Stardust Power.
• "Our focus is on aggregating reliable U.S. based feedstock with scalable refining infrastructure in Oklahoma."
• "As the market continues to evolve to upstream lithium chloride production, we are well positioned to build an American lithium supply chain."

Industry Context

StockSavvy.ai notes that this LOI signifies Stardust Power's proactive approach to securing critical raw materials for its planned battery-grade lithium carbonate production, aligning with the broader industry trend of developing domestic supply chains for critical minerals to reduce reliance on foreign sources and meet growing demand from the electric vehicle and energy storage sectors.

Stakeholder Impact

• Shareholders: Potential for increased supply chain security and future revenue streams if the definitive agreement is executed, but also risks associated with the company's going concern status and potential dilution from future capital raises.
• Creditors: Increased risk due to the company's going concern status, but potential for improved financial stability if feedstock agreements and refinery development are successful.
• Suppliers: Potential for a new significant customer if the refinery proceeds to full operation.
• Employees: Continued employment and potential growth opportunities if the company successfully navigates its financial challenges and operational development.

Next Steps

• Further due diligence on the strategic counterparty.
• Execution of a definitive supply agreement.
• Commencement of initial deliveries in the first half of 2028.
• Advancement of the Muskogee lithium refinery construction.

Key Dates

Recommendation

The LOI for lithium feedstock is a positive development for Stardust Power's long-term strategy, but the significant risks, including the non-binding nature of the agreement and the company's going concern status, necessitate a 'hold' recommendation. Investors should await the execution of a definitive agreement and further clarity on the company's financial stability before considering a stronger position.

Keywords

Lithium Carbonate Equivalent, Lithium Chloride, Feedstock Supply, Muskogee Refinery, Letter of Intent, Stardust Power, Battery Grade Lithium, SEC Filing