Stardust Power Inc., an American developer of battery-grade lithium carbonate, has entered into a financing agreement of up to $15mn in secured convertible debt to prepare for construction of its refinery in Muskogee, Oklahoma. The project targets an annual capacity of 50,000 tonnes of lithium carbonate, a critical material in battery supply chains. The transaction provides the capital required to initiate key technical phases of the industrial site.
Financing terms and industrial objectives
The financing includes an initial $4mn drawdown to support detailed engineering, infrastructure work, and early procurement. The debt carries a 24-month term with an initial repayment moratorium and may be repaid in cash or common stock. The company states that the structure offers financial flexibility suited to project development and serves as a preliminary step toward larger-scale construction financing.
Bridge facility ahead of main capital raise
This financing is presented as a transitional arrangement designed to limit shareholder dilution while supporting pre-construction work. Stardust Power plans to fund the main construction phase through a combination of asset-level debt and equity, seeking to optimise capital efficiency. Roshan Pujari, Founder and Chief Executive Officer, stated that the funding “represents an important step as we prepare for construction” and enables the company to “maintain a capital structure aligned with upcoming project phases.”
Positioning within the strategic metals supply chain
The company notes that the site’s advanced status has attracted interest from investors focused on critical materials. The refinery aims to strengthen North American production of processed lithium at a time of rising demand driven by electric vehicles and energy storage. The Muskogee project is intended to provide a domestic supply alternative, reducing reliance on imports and supporting a local industrial base.
