Stardust Power cuts Oklahoma lithium refinery costs by $200 million

Stardust Power Inc. (NASDAQ: SDST) completed a Front End Loading 3 report for its lithium processing facility in Muskogee, Oklahoma, reducing estimated capital expenditures by nearly $200 million to approximately $500 million for Phase 1.

The FEL 3 report, conducted by engineering firm Primero USA, outlines plans for a facility with initial capacity of 25,000 metric tons per year of battery-grade lithium, expandable to 50,000 metric tons annually in Phase 2. Construction is expected to take approximately 24 months from start of major work to mechanical completion.

The $500 million Phase 1 estimate includes owner's costs, contingency and escalation, with a 90% probability of achievement according to the company. This represents a reduction from previous estimates, with contingency lowered from 40% in the prior FEL 1 phase completed in August 2024.

"This milestone brings Stardust Power within clear reach of a Final Investment Decision and meaningfully reduces risk for our investors and stakeholders," said Roshan Pujari, founder and chief executive officer.

The company selected Primero USA as its FEL 3 engineering partner in August 2024 following a competitive selection process. The report includes a comprehensive 3D process model and detailed cost estimates for both construction and operations.

Stardust Power stated the facility will be designed to minimize air emissions, recycle water and operate with zero liquid discharge. The project is expected to create jobs in engineering, construction and operations.

The company said it has engaged an independent third-party engineering firm to conduct a comprehensive review of the FEL 3 report ahead of its final investment decision.

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