From staff reports Stardust Power Inc., the lithium refinery developer building a refinery in Muskogee, announced signing an agreement to get some of its needed minerals from a Canadian supplier.
Based in Greenwich, Connecticut, Stardust said it executed a letter of intent with Prairie Lithium for the supply of 6,000 metric tons per annum of lithium carbonate equivalent in the form of lithium chloride. The lithium chloride is sourced from the Prairie Lithium Project in Saskatchewan, Canada, and will be used as feedstock at Stardust Power’s lithium processing facility in Muskogee.
In a related matter, Stardust Power announced earlier this month that Kenneth Pitts will serve as construction and subcontracts director, overseeing refinery construction and subcontract portfolios.
Based in Houston, Pitts will direct large-scale onsite projects and coordinate with contractors to keep construction safe, on schedule, and within budget. He will report to Project Director Randall Harris and serve as the company’s lead representative for all construction- related operations.
Harris said the appointment marks “meaningful progress” toward Phase 1 construction of the Muskogee refinery, which was first announced in December 2024.
The agreement with Prairie Lithium marks a significant source of supply as the company eyes a final investment decision and the start of major construction, the firm’s announcement stated.
The supply agreement with Prairie Lithium provides a foundation for near-term feedstock that will enable the company to accelerate its business model, strengthen customer engagement, and further reduce risk during development of Phase 1. The agreement also preserves flexibility for future phases to incorporate multiple chlorides as production scales, company officials said.
A key strength of Stardust Power’s strategy lies in its large central refinery engineered to process multiple approved lithium chloride inputs. This design enables efficient aggregation of feedstock and scalable production of battery-grade lithium carbonate. Supporting this approach, the company continues to work with multiple producers and developers to bring their products to market, positioning itself as a critical hub in North America’s lithium supply chain.
Under the agreement, feedstock will be delivered to the Port of Muskogee’s Free Trade Zone, which offers strategic access to established water, road, and rail networks. The Free Trade Zone designation provides potential advantages such as tariff exemptions and reduced import duties.
Initial deliveries are scheduled to begin in 2027, with volumes scaling up to 6,000 metric tons per annum with the opportunity for additional volumes. Prairie Lithium’s Preliminary Economic Statement identifies up to 17,000 metric tons per annum of production capacity.
Early shipments can be stored in on-site tanks to build sufficient reserves for commissioning and ramp-up of the facility, with ongoing storage maintained to ensure uninterrupted supply. The agreement is non-binding and subject to negotiation and execution of a definitive agreement. The pact spans an initial six-year term, with two additional six-year extension options at Stardust Power’s discretion, enabling up to 18 years of secure feedstock supply.
“Securing reliable, high-quality feedstock is critical to scaling our lithium refining operations,” said Pablo Cortegoso, chief technical officer and co-founder of Stardust Power. “Prairie Lithium is a valuable source that aligns with our commitment to a secure a sustainable North American supply chain. This agreement strengthens our ability to meet growing demand while maintaining operational efficiency.”
The Prairie Project is situated in the Williston Basin of southeast Saskatchewan, Canada, a region renowned for its long history of oil and gas production.
The agreement significantly strengthens Stardust Power’s commercial position, unlocking access to new financing avenues including project-level debt and equity. It also represents a major de-risking step as the company moves closer to full-scale construction and commissioning. Permitting is in the advanced stages, ground is already broken at the Muskogee site, and an initial offtake agreement has been signed.