Stardust Power breaks ground on US$1.2B lithium refinery in Oklahoma

Stardust Power (NASDAQ: SDST), an American developer of battery-grade lithium products, officially broke ground this week on its US$1.2 billion refinery at the Southside Industrial Park in Muskogee, Okla.

The ceremony was held on Wednesday, with senior officials from Stardust Power, Lieutenant Governor Matt Pinnell, and the Mayor of Muskogee, Patrick Cale, in attendance. Other state and local officials were also present.

Despite the ground-breaking milestone, Stardust shares were down 36.2% to US$1.23 apiece on Friday in New York, after touching a 52-week low of US$1.20 per share earlier in the morning. Though the company — with a market capitalization of US$58.9 million — declined to comment on the share price movement, it said in a news release on Friday that it made a public offering of 4.7 million shares in common stock at US$1.20, which could lead to stock dilution. The high cost of Stardust’s refinery might also have sparked concern about the company’s future profitability.

The company acquired its 267,100-sq.-metre site located near the Port of Muskogee in December 2024. It follows an independent environmental assessment in 2023 that determined this property is well suited for the construction of a lithium refinery.

According to the lithium company, this shovel-ready site benefits from many construction and operational advantages, such as proximity to the country’s largest inland waterway system, robust road and rail networks, and access to a skilled workforce rooted in the oil and gas sector.

The site also offers the potential for future expansion, as it is located next to a 161,870-sq.-metre parcel of land which the company has a right of first refusal on.

Stardust Power founder and CEO, Roshan Pujari, said the lithium refinery — which would be the largest of its kind in America — “will be crucial for addressing U.S. national security and supply chain risks.”

“By onshoring critical mineral manufacturing, we are helping to sustain America’s energy leadership. With the land acquired and necessary construction permits secured in 2024, we are excited to break ground and begin construction.”

“Stardust Power’s decision to break ground on its lithium refinery in Muskogee is a significant step forward for Oklahoma’s role in reinforcing our critical mineral supply chains and bolstering national security,” Pinnell said.

The project will be developed in two stages, with the first focused on constructing a production line capable of producing up to 25,000 tonnes per annum. The second will add an additional production line, bringing the total capacity to 50,000 tonnes.