Stardust Power Inc. Reports $23.75 Million Net Loss Following Business Combination and Lithium Refinery Development

Stardust Power Inc., formerly Global Partner Acquisition Corp II, completed a business combination with Stardust Power Operating Inc. on July 8, 2024. The combined company, now operating under the Stardust Power Inc. name, is developing a lithium refinery in Muskogee, Oklahoma, with a planned annual production capacity of up to 50,000 metric tons of battery-grade lithium carbonate (BGLC). For the year ended December 31, 2024, the company reported a net loss of $23.75 million, compared to a net loss of $3.79 million for the period from March 16, 2023 (inception) through December 31, 2023. The increase in net loss is primarily attributable to increased general and administrative expenses, finance charges, and changes in the fair value of various financial instruments. The company had no revenue during either period.

Significant developments during the year included the completion of the land purchase in Muskogee, Oklahoma, on December 16, 2024, for $1.66 million. The company also entered into several non-binding agreements for potential lithium brine feedstock supply, including letters of intent with IRIS Metals and Usha Resources, and a memorandum of understanding with IGX Minerals. Furthermore, Stardust Power secured an exclusive license agreement with KMX Technologies for its vacuum membrane distillation technology in February 2025. The company also engaged Hatch Ltd. for a preliminary readiness assessment and Primero Group for engineering services related to the refinery project.

Key operational developments included the completion of various site due diligence studies, including a critical issues analysis and a Phase I environmental site assessment. As of December 31, 2024, the company employed eight people. The company also received an illustrative incentive analysis for up to $257 million in performance-based incentives from the State of Oklahoma, contingent upon meeting certain criteria. In January 2025, the company entered into a non-binding letter agreement with Sumitomo Corporation of Americas for a potential long-term offtake agreement for 20,000-25,000 metric tons of lithium carbonate annually.

The company's financial statements reveal a significant reliance on short-term loans and equity financing to fund operations. As of December 31, 2024, the company had a substantial accumulated deficit and stockholders' deficit, leading management to express substantial doubt about its ability to continue as a going concern. The company's outlook is contingent upon securing additional funding and successfully completing the construction and commissioning of its lithium refinery. The company's ability to achieve profitability and positive cash flow depends on several factors, including securing binding supply and offtake agreements, managing operational risks, and successfully navigating the competitive lithium market. The company also faces risks related to regulatory changes, market volatility, and the development of alternative battery technologies.