Stardust Power Inks SPAC Deal to Go Public on Lithium Demand Opportunity
Stardust Power has set sights on taking advantage of the ever-growing demand for lithium, a metal primarily used in ceramics and pharmaceuticals. Amid the ever-growing interest and demand for Lithium in powering electric vehicles, there has been an increased focus and interest in companies with tremendous exposure to the critical mineral.
Stardust Power SPAC Deal
Likewise, Stardust Power is one company that has elicited strong interest on Wall Street. Similarly, the company has announced plans to go public through a merger with blank check company Global Partner Acquisition Corp. II in a deal valued at $490 million. The company has already entered into a definitive agreement for a business combination with the special purpose acquisition company.
Under the terms of the agreement, Stardust is to become a publicly listed company on the NASDAQ trading under a new ticker, SDST. The transaction is expected to close in the first half of next year. The company remains focused on becoming a leading producer of battery-grade lithium products to take advantage of the increases in electric vehicle adoption over the next decade.
With demand for lithium expected to increase by over 5,000% by 2030 as lithium-ion batteries are needed to power vehicles, Stardust intends to be at the center of the supply chain. Consequently, the company plans to construct a lithium refining facility in Greater Tulsa, Oklahoma.
The Oklahoma refinery site is on course to come online as it already has access to existing power, water supply, and wastewater treatment. It also has connections to significant railways that can be used to transport the raw materials and the final products. The facility is expected to draw hundreds of employees, helping support the local economy.
The facility will have a production capacity of 50,000 metric tons per year of American battery-grade lithium. Stardust Power plans to leverage direct lithium Extraction technology to recover raw lithium. The process is more efficient than traditional brining pond methods of production and is environmentally sustainable.
In addition, the facility is expected to take advantage of the little lithium refining capacity in the US as more gigafactories crop up across the country amid the growing demand for battery-grade lithium. Amid the minimum refining capacity in the US, most of the worldwide lithium resources are sent to China for refining at 85%.
Growing Lithium Demand
Stardust Power’s proposed new battery-grade lithium refining facility is expected to address the US push to reduce its reliance on China for crucial metals. The country boasts some of the highest lithium reserves at 17%, which can benefit immensely from domestic refining.
The facility should expand the US domestic manufacturing while helping secure the country’s energy dependence by reducing supply chain dependence. Much of the world’s lithium comes from South America and China, which dominate the supply chain for lithium-ion batteries.
Demand for lithium batteries is expected to grow sixfold by 2030, reaching $55 billion per year. This increase is fuelled by climate-conscious customers who are increasingly purchasing electric cars and shunning fossil-fuel vehicles. In addition, the US needs far more lithium to achieve its clean energy goals.
