Stardust Power Inc. (NASDAQ: SDST) has secured new financing to support early-stage construction activities for its planned lithium refinery in Muskogee, Oklahoma, marking another milestone in the project’s progression toward full construction.
The company announced it has executed a Securities Purchase Agreement with a single institutional investor for up to $15.0 million in senior secured convertible debt financing. The facility includes an initial $4.0 million drawdown and is structured to provide flexible capital as Stardust Power advances engineering, infrastructure development and procurement work.
“This facility marks an important step as we prepare for construction and provides optionality and meaningful flexibility as we execute the next phase of the Muskogee project,” said Roshan Pujari, Founder and Chief Executive Officer of Stardust Power. “We are building a robust capital stack with flexibility and shareholder value in mind and are focused on keeping our capital structure aligned with upcoming project milestones.”
The financing carries a 24-month term and includes an initial repayment moratorium, allowing the company to deploy capital without immediate repayment pressure. Stardust Power also retains the option to repay the facility in either cash or common stock, providing additional flexibility as development activities progress.
Company officials said the facility is intended to support near-term development needs and could serve as bridge financing as Stardust Power works toward securing larger, project-level construction financing. The capital will be directed toward detailed engineering, site infrastructure planning and procurement efforts necessary to prepare the refinery for construction.
Stardust Power plans to fund the construction of its 50,000 metric ton per annum lithium refinery through a combination of asset-level equity and asset-level debt. This strategy is designed to limit public equity dilution while maximizing shareholder value, with early-stage investor engagement reflecting confidence in the project’s shovel-ready status.
The Muskogee refinery is expected to play a role in strengthening domestic lithium supply chains as demand continues to grow for electric vehicles, energy storage systems and other battery-powered technologies. By producing battery-grade lithium carbonate domestically, Stardust Power aims to support U.S. energy security and reduce reliance on foreign sources.
Based in Oklahoma, the refinery is strategically positioned to serve North American battery manufacturers and downstream users. Stardust Power has emphasized sustainability throughout the project’s development, aligning with broader efforts to build resilient, responsible energy infrastructure in the United States.
Originally reported by Investing News Network in Investing News.
