Stardust Power Inc. (NASDAQ: SDST) entered into a letter of intent with an unidentified counterparty for the supply of up to 15,000 metric tons per year of lithium carbonate equivalent in the form of lithium chloride, according to a company statement.

The feedstock will come from a lithium brine project in California, with initial deliveries planned for the first half of 2028 to support the company's Muskogee, Oklahoma refinery. The agreement would provide Stardust Power the option to purchase additional volumes.

The Connecticut-based company develops battery-grade lithium carbonate and is building a refinery in Oklahoma designed to produce up to 50,000 metric tons of battery-grade lithium carbonate annually. The Muskogee facility has completed its Front-End Loading 3 engineering study and received an air quality construction permit.

"Securing American sourced lithium chloride aligned with our phased ramp-up reflects the strength of our hub and spoke strategy," said Roshan Pujari, founder and chief executive officer of Stardust Power. "Our focus is on aggregating reliable U.S. based feedstock with scalable refining infrastructure in Oklahoma."

The letter of intent is non-binding and subject to due diligence and execution of a definitive agreement. The company stated there is no certainty the final agreement will be completed. Additional details including the project name and location will be released upon execution of a definitive agreement or as agreed by both parties.

The Muskogee refinery is located near the Port of Muskogee's Free Trade Zone with access to road, rail and water transportation.