Stardust Power inks long-term lithium supply deal with Sumitomo

Stardust Power (NASDAQ: SDST) will supply Japan’s Sumitomo Corporation with at least 20,000 tonnes of lithium carbonate a year when its refinery in Oklahoma enters production, the US lithium developer said in a filing.The supply agreement has an initial term of 10 years, starting from the date of first qualification of Stardust’s lithium carbonate product for sale to Sumitomo customers. The parties can also mutually agree to extend the agreement by five years and to increase the annual delivery to 25,000 tonnes.The pricing structure will be based on spot market prices published by either Fastmarkets or another mutually recognized price reporting agency. Stardust and Sumitomo have also agreed to adjust pricing in the future to accommodate specific customers.Stardust recently broke ground on its first battery-grade lithium refinery at the Southside Industrial Park in Muskogee, Oklahoma. Once complete, the facility would be one of the largest of its kind in the country, with the capacity to produce up to 25,000 tonnes in its first phase, then increasing to 50,000 tonnes once a second production line is introduced.The supply agreement also includes joint marketing efforts to promote the lithium carbonate production, with Sumitomo agreeing to undertake a minimum level of marketing activities, the specifics of which will be determined in the final agreement.Prior to producing battery-grade lithium that meets end-user specifications, Sumitomo will buy technical-grade lithium products. The purchase volumes will either match Stardust’s production or adhere to the annual agreed quantities, with prices reflective of the current spot market.Stardust Power’s shares jumped 7.1% to $1.07 apiece by 1:20 p.m. ET in New York, with a market capitalization of $57 million. The stock has fallen more than 90% over the past six months.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com