Mandrake to Supply 7,500 Tons Lithium Chloride Annually to US Refinery
Mandrake Resources has signed a non-binding Letter of Intent to supply lithium chloride to US refinery Stardust Power, marking a strategic step in the US push for domestic critical minerals.
- Non-binding LOI to supply 7,500 metric tons lithium chloride annually
- Supply supports Stardust Power’s 50,000-ton lithium carbonate refinery in Oklahoma
- Mandrake’s Utah Lithium Project positioned as a key US domestic source
- Agreement aligns with US energy independence and critical minerals strategy
- LOI terms include a 12-year initial supply with option to extend
Mandrake’s Strategic US Lithium Supply Agreement
Mandrake Resources Limited (ASX – MAN) has taken a significant step towards commercialising its Utah Lithium Project by signing a non-binding Letter of Intent (LOI) with Stardust Power Inc., a US-based lithium refinery developer. The agreement outlines Mandrake’s commitment to supply 7,500 metric tons of lithium chloride annually to Stardust’s upcoming refinery in Muskogee, Oklahoma.
This move places Mandrake at the heart of the US government’s broader strategy to secure domestic sources of critical minerals, reducing reliance on international suppliers amid geopolitical tensions. The Utah Lithium Project, spanning nearly 94,000 acres in a pro-mining jurisdiction, offers a large-scale, high-quality lithium brine resource that fits well with Stardust Power’s vision of a fully integrated American lithium supply chain.
A Refinery with Ambitious Capacity and Backing
Stardust Power is developing a lithium refinery with an anticipated capacity of up to 50,000 metric tons of battery-grade lithium carbonate per year. The refinery benefits from strong state support in Oklahoma, including potential access to over US$257 million in incentives, rebates, and tax credits. Stardust also has a downstream sales agreement with a major Japanese trading house, securing long-term commercial offtake for a significant portion of its production.
Mandrake’s Managing Director, James Allchurch, highlighted the strategic importance of this partnership, noting the accelerating US drive towards energy independence and the elimination of geopolitical risks associated with critical mineral supply chains. The LOI’s terms, including a 12-year initial supply period with an option to extend, reflect confidence in the project’s scale and quality.
Implications for Mandrake and the US Lithium Market
While the LOI is non-binding and subject to a definitive agreement, it signals strong market interest in Mandrake’s Utah Lithium Project. The project’s proximity to key transport routes and infrastructure enhances its attractiveness as a reliable feedstock supplier. For Mandrake, this agreement could unlock further financing opportunities and accelerate project development timelines.
From a broader perspective, the deal underscores the growing momentum behind US efforts to localize critical minerals supply chains, particularly lithium, which is essential for battery production and the clean energy transition. As global demand for lithium surges, partnerships like this could reshape the competitive landscape and strengthen domestic supply resilience.
Investors will be watching closely for progress on the definitive agreement and the construction milestones of Stardust Power’s refinery, which will be pivotal in translating this LOI into tangible production and revenue streams.
Bottom Line?
Mandrake’s LOI with Stardust Power marks a pivotal step in US lithium supply chain localization, but execution risks remain.
Questions in the middle?
- When will the definitive supply agreement be finalized and binding?
- What are the expected timelines for Mandrake’s Utah Lithium Project to reach commercial production?
- How will pricing and margin terms be finalized under the cost-plus model?
