Stardust Power Inc. (NASDAQ: SDST) entered into a Letter of Intent with an institutional investor for potential project-level financing of up to $150 million for its planned lithium refinery in Muskogee, Oklahoma.

The non-binding agreement provides flexibility across equity, debt, and hybrid financing structures. The investment framework includes provisions for syndication and direct capital participation, according to the company's statement.

The lithium refinery project is designed to produce up to 50,000 metric tons per annum of battery-grade lithium carbonate at full capacity. Development is planned in two phases of approximately 25,000 metric tons per annum each.

"This LOI is an important step as we gear up to build this critical piece of national infrastructure," said Roshan Pujari, Founder and Chief Executive Officer of Stardust Power. "Establishing the capital stack at the project level is a key milestone, and we believe it reflects growing recognition from institutional investors that our refinery is both viable and strategically positioned."

Stardust Power has completed a FEL-3 engineering study and secured key permits, including an air permit from the Oklahoma Department of Environmental Quality. The company states that construction and commissioning can begin upon securing financing.

The parties agreed to proceed through customary due diligence and negotiation of definitive agreements. The company indicated the project-level investment structure is intended to reduce dilution for public shareholders while supporting market-driven valuation for the refinery.

The agreement represents part of the company's efforts to secure funding from multiple investors for the lithium refinery project, which the company positions within the domestic battery materials supply chain.