The agreement may be extended by five years and the delivery increased to 25,000tpa by mutual agreement. Credit: T. Schneider/Shutterstock.

Stardust Power, a US-based battery-grade lithium developer, has signed a non-binding agreement with Japan’s Sumitomo Corporation for the long-term commercial offtake of 20,000 tonnes per annum (tpa) of lithium carbonate.

The initial agreement spans a ten-year period, commencing from the date when Stardust Power’s lithium carbonate qualifies for sale to Sumitomo’s customers.

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Sumitomo retains the option to extend the contract for an additional five years, potentially increasing the delivery of lithium to 25,000tpa.

Stardust Power will supply the lithium carbonate to Sumitomo from the first production line of its lithium refinery at the Southside Industrial Park in Muskogee, Oklahoma, US, once it enters production.

Stardust Power founder and CEO Roshan Pujari told Mining Technology: “This agreement represents another significant milestone for Stardust Power and we are excited to be collaborating with Sumitomo, a global and esteemed leader in the metals, mining and energy sectors.

“Together, we intend to now work toward a definitive agreement, which will go a long way toward supporting US energy independence, the reshoring of critical mineral supply chains and the creation of high-quality American manufacturing jobs.”

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Under the agreement, before Stardust Power produces battery-grade lithium that meets end-user specifications, Sumitomo has agreed to purchase technical grade lithium products in volumes that match Stardust Power’s production or the agreed annual volumes, based on the prevailing spot market rates.

The pricing structure of the contract is tied to spot market rates as published by Fastmarkets or another mutually agreed-upon pricing agency.

The execution of this transaction hinges on the successful negotiation and signing of a definitive agreement between Stardust Power and Sumitomo.

Both parties have also committed to joint marketing efforts to promote lithium carbonate, with specific minimum marketing activities to be outlined in the final agreement.

A detailed negotiation timeline including milestones and deadlines for essential deliverables will be established to ensure the progression of this partnership.

Stardust Power broke ground on its Oklahoma lithium refinery last month on a 66-acre site acquired in December 2024.

It is being developed in two phases and will produce up to 50,000tpa of battery-grade lithium.