Stardust Power, a U.S.-based developer of battery-grade lithium carbonate, has signed a securities purchase agreement with a single institutional investor, providing up to $15 million in senior secured convertible debt financing.
The financing has a 24-month term, includes an initial repayment moratorium, and provides the company with the option to repay the facility in cash or common stock.
According to the company, the funding is intended to support early-stage construction at its 50,000 metric ton per annum lithium refinery project in Muskogee, Oklahoma.
The debt financing includes an initial $4 million drawdown and offers the company flexible capital to support detailed engineering, infrastructure, and procurement activities as it moves toward construction.
The company plans to fund the project through a combination of asset-level equity and debt financing, designed to minimize public equity dilution and maximize shareholder value, with early-stage investor engagement reflecting interest in the project’s shovel-ready status.
“This facility marks an important step as we prepare for construction and provides optionality and meaningful flexibility as we execute the next phase of the Muskogee project,” said Roshan Pujari, Founder and Chief Executive Officer of Stardust Power. “We are building a robust capital stack with flexibility and shareholder value in mind and are focused on keeping our capital structure aligned with upcoming project milestones.”
In 2023, the company entered into a definitive agreement to merge with Global Partner Acquisition Corp. II, a publicly traded special purpose acquisition company (SPAC), resulting in Stardust Power becoming a publicly listed company on the Nasdaq under the ticker symbol “SDST.”
According to Mercom’s 9M and Q3 2025 Funding and M&A for Energy Storage report, announced debt and public market financing for Energy Storage technology companies decreased 44% YoY, with $8.4 billion in 29 deals in 9M 2025, compared to $15 billion raised in 22 deals in 9M 2024.
Recently, Electra Battery Materials, a provider of battery-grade materials for the electric vehicle and energy storage industries, announced the completion of its $34.5 million financing and $40 million debt equitization for its cobalt sulfate refinery in Temiskaming Shores, Ontario, Canada.
