S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
GREENWICH, Conn. - Stardust Power Inc. (NASDAQ: SDST), a developer of battery-grade lithium products, has entered into a 90-day exclusivity agreement with KMX Technologies, Inc. to negotiate the use of a lithium brine concentration technology. The technology, known as vacuum membrane distillation (VMD), is expected to reduce operating costs and capital expenditures in Stardust Power's supply chain, including at its Muskogee, Oklahoma refinery, which is currently under development.
The potential licensing arrangement could grant Stardust Power exclusive rights to the VMD technology for lithium extraction in the United States, Canada, and certain other global jurisdictions. The company aims to incorporate this technology across its supply chain to improve sustainability and water recycling efforts. The VMD process not only separates lithium but also produces high-quality water as a byproduct, which can be utilized in lithium extraction processes instead of local freshwater resources.
Stardust Power's CEO, Roshan Pujari, emphasized the efficiency of KMX's technology in terms of energy and water usage, which aligns with the company's commitment to sustainability in the U.S. lithium supply chain. Meanwhile, KMX CEO Zachary Sadow expressed pride in partnering with Stardust Power, acknowledging their role in advancing the North American lithium supply chain.
The Canadian government has publicly validated KMX's lithium concentration technology for its ability to concentrate lithium without significant losses, which could enhance project economics for Stardust Power. However, the completion of this deal is contingent upon the negotiation and execution of definitive documentation and mutual board approvals.
The announcement comes as Stardust Power continues to develop its Muskogee refinery, designed to produce up to 50,000 metric tons of battery-grade lithium annually, catering to the electric vehicle (EV) industry and reinforcing America's energy leadership.
This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. Investors are cautioned not to place undue reliance on these statements, which are not guarantees of future performance.
In other recent news, Stardust Power Inc. has announced significant developments. The company recently reported the appointment of Paramita Das as its new Chief Strategy Officer and Senior Advisor. With over two decades of experience in the metals and mining industry, Das is expected to support Stardust Power's commercialization efforts and drive the company's strategy.
Stardust Power has also made changes in its independent registered public accounting firm, transitioning from WithumSmith+Brown, PC, to KNAV CPA LLP. This decision, recommended by the audit committee, was executed without any reported disagreements on accounting principles or practices, financial statement disclosure, or auditing scope or procedure.
In addition, Stardust Power has entered into a significant engineering agreement with Primero USA, Inc. Valued at approximately $4.7 million, the contract pertains to the development of Stardust Power's Muskogee Lithium facility in Oklahoma. The services, including engineering, design, and consultancy, are expected to be completed in the first half of 2025. These developments mark a period of notable change and progress for Stardust Power Inc.
InvestingPro Insights
Stardust Power Inc. (NASDAQ: SDST) has been making waves in the lithium industry with its recent exclusivity agreement, and a look at the company's financial metrics provides additional context for investors.
According to InvestingPro data, Stardust Power has a market capitalization of $415.96 million, reflecting its position as a smaller player in the lithium sector. This valuation comes despite the company not being profitable over the last twelve months, with an operating income of -$4.59 million for the same period.
Interestingly, InvestingPro Tips highlight that SDST has seen a significant return over the last week, with a 20.11% price increase, and a strong 28.43% return over the last month. This recent positive momentum could be linked to investor optimism surrounding the potential VMD technology licensing deal and its implications for the company's future operations.
However, it's worth noting that SDST generally trades with high price volatility, which aligns with the nature of the developing lithium market and the company's growth stage. The stock's price is currently at 31.36% of its 52-week high, suggesting there may be room for recovery if the company's strategic moves pay off.
For investors seeking a deeper understanding of Stardust Power's potential, InvestingPro offers 7 additional tips that could provide valuable insights into the company's prospects and challenges in the competitive lithium market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.