Stardust Power Faces Nasdaq Delisting Amid Capital Raises

Introduction

STARDUST POWER INC (NASDAQ: SDST) is a Greenwich, Connecticut–based developer of battery-grade lithium products. Founded in 2022, the company aims to establish a domestic lithium refining platform to support U.S. energy independence and electric vehicle supply chains.

Corporate Structure

Stardust Power operates with a staff of 11–50 employees, under the leadership of Founder and CEO Roshan Pujari. In May 2025, the company appointed Carlos Urquiaga as Senior Advisor for capital-raising efforts; Urquiaga brings significant experience in transactions accumulated over his career at leading financial institutions. The firm qualifies as an “emerging growth company” under U.S. securities regulations, which allows for certain scaled-back reporting requirements.

Recent Developments

• January 24, 2025: Stardust Power priced a public offering of up to 4,792,000 shares and warrants at $1.20 per unit, targeting gross proceeds of $5.75 million before fees.
• March 18–19, 2025: The Nasdaq Listing Qualifications Department issued deficiency notices for failure to meet minimum bid price ($1.00) and publicly held market value ($15 million) requirements.
• April 3, 2025: Nasdaq notified Stardust Power that it no longer met the $50 million market-value standard and must regain compliance by September 30, 2025, or face potential delisting.
• May 13, 2025: The Oklahoma Department of Environmental Quality determined that the planned lithium processing facility in Muskogee would not require an industrial wastewater discharge permit, due to a closed-loop water system design.
• May 14, 2025: In its Q1 2025 financial report, Stardust Power disclosed a net loss of $3.8 million, compared to $1.4 million in Q1 2024, and cash and cash equivalents of $1.6 million. Operating cash burn totaled $2.9 million, while financing activities generated $4.5 million, driven by public offering proceeds and loan repayments.
• June 16, 2025: The SEC declared effective Stardust Power’s S-1 registration statement, enabling additional share issuance. Concurrently, a Form 424B3 revealed a Common Stock Purchase Agreement with B. Riley Principal Capital II, LLC for up to $50 million in equity commitments.

Financial and Strategic Analysis

Stardust Power’s first-quarter results indicate a cash-intensive build-out phase. With $1.6 million in liquidity as of March 31, 2025, the company is relying on equity raises to support engineering, permitting, and pre-construction work. The January public offering and June placement agreement are intended to address capital needs while keeping limited debt obligations. Management emphasizes the closed-loop water system waiver as a means to save costs, thereby reducing regulatory timelines. However, the Nasdaq delisting warning necessitates prompt actions to restore share price and market capitalization, influencing trading volumes and communications with investors.

Market Position and Industry Context

Global vehicle emission standards, including California’s 2035 zero-emission mandate, are increasing demand for lithium-ion batteries and, consequently, refined lithium chemicals such as hydroxide and carbonate. China currently dominates the refining capacity, creating vulnerabilities within North American supply chains. Stardust Power’s Muskogee facility aims to produce up to 50,000 metric tons per annum of battery-grade lithium, with the goal of diversifying U.S. supply capabilities. Collaborative efforts with Ohio University on Direct Lithium Extraction research and a service agreement with Oklahoma Gas and Electric for a dedicated substation are intended to enhance the firm’s technical capabilities. Competing firms and established miners are also pursuing similar expansions, presenting challenges regarding project execution and cost management.

tl;dr

• As of June 17, 2025, SDST shares trade at $0.18, a decrease of 53.64% over a specified period.
• Nasdaq issued a noncompliance notice on April 3, 2025; the company must meet a $50 million market-value threshold by September 30, 2025.
• A wastewater-permit waiver and strategic partnerships (Ohio University MOU, OG&E substation agreement) are expected to advance project timelines.
• Q1 2025 net loss of $3.8 million and $1.6 million cash emphasize reliance on equity financing; the January and June offerings aim to secure up to $55.75 million in gross proceeds.
• The company’s near-term outlook depends on successful capital raises, Nasdaq compliance, and milestones related to its Oklahoma refinery.