STARDUST POWER Inc Secures $4.52M for Lithium Facility Amid Nasdaq Compliance Challenges

Introduction

STARDUST POWER INC (NASDAQ: SDST) is a U.S.-based developer of battery-grade lithium products. Founded in 2022 and headquartered in Greenwich, Connecticut, the company is focused on strengthening domestic supply chains by building a lithium refinery in Muskogee, Oklahoma. Lithium extracted and refined through its proposed facility is intended to support the growing demand for electric vehicles and energy storage systems.

Corporate Structure

As of mid-2025, STARDUST POWER INC employs between 11 and 50 staff members. The company operates under the leadership of an executive team and board of directors, and trades on the Nasdaq Global Market. Its public filings reflect an ownership structure that includes common stock and strategic share transfers, including recent distributions by founder Roshen Pujari to affiliated trusts and partners.

Lithium refinery by Mario Caruso

Recent Developments and News

• March 27, 2025: The company announced it will release its full year 2024 financial results after market close on Thursday, March 27, 2025.
• April 3, 2025: Nasdaq’s Listing Qualifications Department notified STARDUST POWER INC that it did not meet the minimum market value of listed securities requirement of $50 million, triggering a 180-day compliance period ending September 30, 2025. The firm also remains under notice for minimum bid price and public float standards.
• June 18, 2025: STARDUST POWER INC closed an underwritten public offering, raising approximately $4.3 million before fees through the sale of 21.5 million shares at $0.20 each. Underwriters received a 45-day option to purchase up to 3.225 million additional shares.
• July 2, 2025: Underwriters exercised their over-allotment option in full, adding 1.1 million shares and generating an additional $220,000 of gross proceeds, bringing total offering proceeds to approximately $4.52 million.
• Permitting Milestone: The Oklahoma Department of Environmental Quality determined that no industrial wastewater discharge permit will be required for the proposed Muskogee facility.
• Strategic Agreements:
  • A Memorandum of Understanding (MOU) with Ohio University to collaborate on advanced lithium extraction and Direct Lithium Extraction (DLE) technologies.
  • A key service agreement with Oklahoma Gas and Electric Company (OG&E) to develop an electrical substation on the refinery site.

Financial and Strategic Analysis

The capital raises in June and July 2025 are intended to fund the Definitive Feasibility Study (DFS/FEL-3) for the Muskogee lithium processing facility, which is a necessary step for securing construction financing and reaching a Final Investment Decision. As of July 14, 2025, the company had:

• 84,447,421 shares of common stock outstanding.
• 10,430,800 shares underlying warrants.
• Common stock trading at $0.47 per share and warrants at $0.06 each, per the July 17, 2025 prospectus filing.

Risk factors outlined in the Form 424B3 prospectus indicate the high-risk nature of lithium project development, reliance on additional financing, and compliance with Nasdaq listing requirements. Insider transactions over the past six months have been exclusively sales, with executives and directors divesting shares to cover tax obligations and transferring stock into family trusts.

Market Position and Industry Context

Global demand for lithium-ion batteries is accelerating, driven by regulatory mandates such as California’s requirement that all new light-duty vehicles sold by 2035 be zero-emission. Currently, most lithium refining capacity resides in China, which presents supply chain considerations for U.S. automakers and energy companies. By establishing a domestic lithium refinery with an anticipated capacity of 50,000 metric tons per annum, STARDUST POWER INC aims to diversify supply, support American manufacturing, and meet growing demand while adhering to environmental standards.

tl;dr

On June 18 and July 2, 2025, STARDUST POWER INC raised a combined approximately $4.52 million to complete its Muskogee facility feasibility study. Key partnerships include an MOU with Ohio University and a service agreement with OG&E. A permitting determination by the Oklahoma Department of Environmental Quality removed the need for a wastewater discharge permit. Nasdaq compliance notices dated April 3, 2025, set a September 30, 2025 deadline to meet market value and bid price requirements. Completion of the DFS/FEL-3 will position the project for construction financing and a Final Investment Decision.