Addressing Lithium Supply Insecurity in the US - Stardust Power's CEO, Roshan Pujari

The United States holds abundant lithium resources, potentially accounting up to 17% of the global supply, yet there has been limited development of refining and conversion facilities crucial for producing battery-grade lithium products. Stardust Power intends to change that. Its strategy is to become a leading producer in the US.

"Our combined experience demonstrated the critical gap in the supply chain is refinery capacity, hence we founded Stardust Power to address this important need," Roshan Pujari, Stardust Power's CEO, tells Auto Futures.

To this end, the company is developing a lithium refinery in Greater Tulsa, Oklahoma, capable of producing 50,000 metric tonnes per annum of battery-grade lithium. 

"Reliance on Chinese dominance in the market, representing up to 66% of total market share and 85% of refinery capacity, poses significant risks, especially amid rising geopolitical tensions."

"Much of the raw material feedstock originates from regions like Africa, South America, and Australia. Consequently, the US must assert itself as an energy transition leader to establish a resilient domestic supply chain, reducing dependence on foreign sources and safeguarding critical minerals like battery-grade lithium from potential threats posed by external interests," he adds.

Stardust Power's approach to US lithium production is based on innovation and efficiency.

"Unlike traditional methods, Stardust Power is establishing a large, centrally located refinery that is optimized to accommodate multiple sources of brine input. Through on-site direct lithium extraction and subsequent concentration or crystallization of the feedstock en route to the central refinery, the company is maximizing logistical efficiencies. This forward-thinking engineering approach not only facilitates faster scaling of production compared to singular asset-focused developments but also mitigates risks associated with technology and exploration."

The company's phased approach involves initially building a refinery with a capacity of up to 25,000 metric tons per annum, supporting the subsequent development of an additional 25,000 metric tons per annum in the second phase.

"Leveraging existing supplies such as produce water and technical or crude-grade lithium, the company minimizes upstream permitting and exploration risks while ensuring a consistent supply chain. Furthermore, Stardust Power employs proven and established technology in its conversion process to further mitigate technological risks, positioning itself as a leader in sustainable and efficient lithium production in the US market," explains Pujari.

Fostering US Energy Independence

In January, 2024. Stardust Power announced the selection of Southside Industrial Park in Muskogee, Oklahoma, as the site for the new lithium refinery. 

"We chose Oklahoma due to its central US location as it provides unparalleled advantages through efficient transport routes and a workforce skilled in oil and gas engineering, promising logistical ease and operational excellence," says Pujari.

"The aim is to be a leader in fostering American energy independence while contributing to local job creation and economic growth. Once our lithium refinery is fully operational, it will play a leading part in America's energy transition while also enhancing Oklahoma's local economy by generating substantial new investment and employment opportunities," he adds.

Pujari says the company is also prioritising sustainability across its operations.

"We use renewable energy sources like solar and wind power through Oklahoma electrical grid. Our refining facility is designed for low emissions, mainly electric to reduce carbon output and noise pollution. Our facility is designed for zero-liquid discharge. Our lithium feedstock is carefully monitored through our Supplier Code of Conduct to meet environmental standards. Byproducts, including calcium, magnesium, and salt mixtures, are non-toxic and can be repurposed or safely disposed of." 

An Unprecedented Demand For Minerals 

In the first half of 2024, Stardust Power plans to list on the NASDAQ under the ticker symbol SDST. This marks a pivotal moment in its trajectory.

"Concurrently, Stardust Power aims to break ground on its lithium refinery and commence build-out operations, setting the stage for expansion and advancement in the growing battery-grade lithium market. We are planning on a vertical integration, where we will develop lithium assets for our feedstock," says Pujari.

"On the business front, we look forward to signing new partnerships and agreements with suppliers and customers. We are excited to work with the community in Muskogee on community initiatives and drawing strength from the local skilled workforce who will work in our refinery."

Finally, we asked him for his outlook on e-mobility in the US by the end of the decade.

"Production of electric vehicles has fueled an unprecedented demand for minerals used in battery cells, such as lithium. Auto OEMs and battery manufacturers are seeking domestic supply options. It is estimated that between 2020-2030 the demand for lithium for use in EV batteries will grow by a CAGR of ~33%. To date, lithium demand has been driven more than 20-fold increase from use in EV’s essential to the global electrification transition," concludes Pujari.