Stardust Power completes engineering report for Oklahoma lithium facility

Published 09/09/2025, 12:38
Stardust Power completes engineering report for Oklahoma lithium facility

GREENWICH, Conn. - Stardust Power Inc. (NASDAQ:SDST), currently trading at $2.93 and down over 90% year-to-date, announced Tuesday the completion of the Front-End Loading 3 (FEL 3) engineering report for its planned lithium processing facility in Muskogee, Oklahoma. According to InvestingPro data, the company maintains more cash than debt on its balance sheet, though it’s currently experiencing rapid cash burn.

According to the company’s press release, the report reveals significantly reduced capital expenditure estimates of approximately $500 million for the facility’s first phase, nearly $200 million below previous estimates, with a 90% probability of achievement. This development comes as particularly significant given the company’s current market capitalization of just $24.78 million and negative EBITDA of $24.25 million in the last twelve months.

The Phase 1 facility is designed to produce 25,000 metric tons per annum of battery-grade lithium, with plans for expansion to 50,000 metric tons in Phase 2, potentially making it one of the largest lithium refineries in the United States.

Construction is expected to take approximately 24 months from the start of major work to mechanical completion, the company stated.

The engineering report, completed by Primero USA, includes a 3D process model and detailed cost estimates for both construction and operations. The project’s contingency has been reduced from a previous 40% to a "significantly lower level," reflecting increased project definition, according to the company.

"This milestone brings Stardust Power within clear reach of a Final Investment Decision," said Roshan Pujari, Founder and Chief Executive Officer of Stardust Power, in the statement.

The facility is designed to minimize environmental impact with features including water recycling and zero liquid discharge operations. The company stated the project is expected to create hundreds of jobs across engineering, construction, and operations.

Stardust Power indicated 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.

In other recent news, Stardust Power Inc. reported its second-quarter 2025 financial results, emphasizing notable strategic advancements. Despite a year-over-year increase in net loss, the company has seen positive investor sentiment. The optimism appears to be fueled by strategic partnerships and industry trends that favor domestic lithium production. These developments have contributed to a surge in the company’s stock. The results were announced on August 13, marking a significant moment for Stardust Power as it navigates a challenging market environment. Investors are closely watching how these strategic moves will impact the company’s future performance.

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