Stardust Power secures $15 million convertible debt financing to advance engineering and early construction of its Oklahoma lithium refinery project.
Stardust Power Inc., a U.S.-based company focused on producing battery-grade lithium carbonate for the domestic energy storage and electric vehicle markets, has announced a significant financing milestone that will help move its flagship lithium refinery project in Oklahoma closer to construction. The company has entered into a Securities Purchase Agreement with a single institutional investor, securing access to up to $15.0 million in senior secured convertible debt financing. This funding package is specifically designed to support early-stage construction and preparatory development activities at Stardust Power’s planned lithium refining facility in Muskogee, Oklahoma.
The financing structure provides immediate as well as longer-term flexibility. Under the agreement, Stardust Power will receive an initial drawdown of $4.0 million, which will be used to accelerate near-term activities such as detailed engineering work, site infrastructure development, and procurement of critical equipment and materials. These steps are essential to de-risking the project and positioning it for full-scale construction readiness. Additional capital may be accessed under the facility as the project continues to meet development milestones.
The debt facility carries a 24-month term and includes an initial repayment moratorium, allowing the company to focus its resources on advancing the project during its most capital-intensive early phase. Importantly, the financing offers Stardust Power the option to repay the debt either in cash or through the issuance of common stock. This optionality provides management with strategic flexibility to optimize its capital structure depending on market conditions, operational progress, and shareholder considerations.
Management has indicated that this financing is intended primarily to support short-term development needs and may also function as bridge financing. As the Muskogee project progresses toward final investment decisions and full construction, Stardust Power expects to pursue larger, project-level financing solutions that will underpin the refinery’s buildout and long-term operations.
Commenting on the announcement, Roshan Pujari, Founder and Chief Executive Officer of Stardust Power, emphasized the strategic importance of the funding. According to Roshan Pujari, the facility represents a critical step forward as the company transitions from planning into execution. He highlighted that the financing not only strengthens the company’s near-term liquidity position but also provides meaningful flexibility as Stardust Power advances into the next development phase of the Muskogee refinery. Pujari also noted that the company is deliberately building a robust and adaptable capital stack that aligns closely with upcoming project milestones while maintaining a strong focus on shareholder value.
Looking ahead, Stardust Power plans to fund the full construction of its lithium refinery—designed for 50,000 metric tons per annum of battery-grade lithium carbonate production—through a combination of asset-level equity and asset-level debt financing. This approach is intended to limit dilution of public shareholders while still providing sufficient capital to complete construction and commence operations. Early-stage discussions with potential investors and lenders have reportedly shown strong interest, reflecting confidence in the project’s advanced development status and its designation as “shovel-ready.”
Located in Muskogee, Oklahoma, the refinery is positioned to play an important role in strengthening the U.S. domestic lithium supply chain. As demand for lithium continues to grow rapidly, driven by electric vehicles, grid-scale energy storage, and clean energy technologies, projects like Stardust Power’s Muskogee facility are expected to become increasingly strategic. With this latest financing in place, the company has taken a meaningful step toward turning its development plans into a fully operational lithium refining asset.
