Stardust Power, Mandrake Resources Secure 18-Year Lithium Supply Agreement

Stardust Power Inc. has entered into a non-binding letter of intent with Mandrake Resources Limited to secure a long-term supply of 7,500 metric tons per annum of lithium chloride from Mandrake’s Utah Lithium Project, supporting the development of Stardust's lithium refinery in Muskogee, Oklahoma. This 18-year agreement, with a firm 12-year base term and extension options through 2042, provides critical supply chain security amid global lithium processing capacity being concentrated in Asian markets. The Utah project benefits from existing infrastructure, regulatory stability, and proximity to transport routes, aligning with Stardust Power's strategy for a centralized U.S. lithium supply hub and enhancing financing prospects for its $257 million state-supported facility investment. The deal exemplifies a broader industry shift toward reducing dependence on foreign processing and securing domestic critical minerals supply, driven by geopolitical considerations. Following the announcement, Mandrake Resources' shares rose significantly, reflecting investor confidence in the strategic partnership. Despite the promising collaboration, Stardust Power faces financial challenges, including consistent losses and negative equity, which impact its stock performance and valuation.