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.