Stardust Power Inc. (NASDAQ:SDST) shares soared 15% on Monday after the company announced a strategic supply agreement with Mandrake Resources Limited, ensuring access to 7,500 metric tons per year of lithium chloride from Mandrake’s Utah Lithium Project.
The companies signed a non-binding Letter of Intent outlining a 12-year supply arrangement with an optional six-year extension, potentially guaranteeing Stardust Power up to 18 years of domestically sourced lithium. The material will be used at the company’s Muskogee, Oklahoma processing facility, which is central to its goal of building a fully domestic lithium supply chain.
“We see strong strategic alignment between Mandrake’s Utah Lithium Project and our vision for a fully integrated American lithium supply chain,” said Pablo Cortegoso, Chief Technical Officer and Co-Founder of Stardust Power, citing the project’s scale and its strong logistical advantages.
Located in the northern Paradox Basin, the Utah project hosts an Inferred Resource of 3.3 million tonnes of lithium carbonate equivalent and benefits from proximity to major transportation routes — allowing for efficient delivery to Stardust’s Port of Muskogee facility.
The partnership supports Stardust Power’s centralized refinery model, which is designed to process lithium chloride feedstock from multiple sources. The company continues to progress with permitting and site preparation, advancing toward its Final Investment Decision and the start of large-scale construction.
The agreement is subject to the finalization of a definitive purchase contract between the two parties.