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Mandrake Resources (ASX:MAN) has shaken hands with Nasdaq-listed lithium refiner Stardust Power on a supply deal that will see the Australian explorer ship as much as 7,500 tons of lithium chloride to Oklahoma each year.
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Stardust has yet to actually build the Muskogee facility in question, but once it’s been established, the Nasdaq company expects to produce up to 50,000 metric tons of battery-grade lithium carbonate per annum. Mandrake will be one of Stardust’s feedstock providers once everything’s up and running.
The agreement has quite the run-time, too; Mandrake and Stardust will be partnered for at least twelve years, and share an option to extend to 2042.
Like many others, the deal comes as Stardust looks for critical mineral sources. Mandrake was happy to step up as the answer, said managing director James Allchurch.
“Under President Donald Trump, the U.S. is moving at a phenomenal speed to eliminate the geopolitical risks of sourcing critical minerals and feedstocks from potentially unfriendly international jurisdictions,” Mr Allchurch explained.
Those “unfriendly jurisdictions” basically boil down to one: China. The ‘why’ doesn’t really bother Mandrake, though – what does is that they can capitalise on the State-side scramble and solidify the best deals on the table.
The fact Mandrake controls a Utah location worked in their favour: “A domestic location offers a significant strategic advantage,” Mr Allchurch said.
With a letter of intent signed and the Mandrake-Stardust agreement expected to be formalised before too long, everything now turns to watching the impending Muskogee development. The refinery has as much as US$257 million behind it through state incentives and promised funding, which will help the build.
Stardust first broke ground on the development in January. An exact date for when the ribbon is cut has yet to be shared by the Nasdaq-listing company.
“This project not only strengthens our state’s position as a leader in sustainable energy, but it also creates hundreds of good-paying jobs and drives economic growth for our communities,” Stardust said at the time.
MAN shares will this morning open at 2.3c each.
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