Stardust Power enter into supply agreement with Sumitomo

Stardust Power has entered into a non-binding letter agreement with Sumitomo, a New York corporation, contemplating a long-term commercial offtake agreement, pursuant to which Sumitomo would agree to acquire 20 000 tpy of lithium carbonate from the Stardust Power’s first line of production, with the potential to increase to 25 000 t based on mutual agreement.

The initial contract term would span 10 yr starting from the date of the first qualification of the Stardust Power’s lithium carbonate for sale to any of Sumitomo’s customers, with an option for Sumitomo to renew for an additional five years under mutually agreed terms, provided written notice is given to Stardust Power at least 12 months prior to the end of the initial term.

The parties have agreed to pricing based on spot market prices, published by either Fastmarkets or another mutually agreed upon reputable market price reporting agency, and agreed to collaborate reasonably and as necessary to adjust pricing in the future to accommodate specific customers. The parties agreed to undertake joint marketing efforts to promote the lithium carbonate, with Sumitomo agreeing to minimum marketing activities to be determined in the definitive agreement.

Under the agreement, prior to producing a battery grade product that is qualified by end-use customers, Sumitomo would agree to purchase technical grade lithium products at the annual volumes, or in volumes up to what Stardust Power produces, based on spot market prices published by either Fastmarkets or another mutually agreed upon reputable market price reporting agency.

The transaction is subject to the negotiation and execution of a definitive agreement by the parties. A detailed negotiation timeline will be established to include milestones and deadlines for key deliverables.

Read the article online at: https://www.globalminingreview.com/mining/04022025/stardust-power-enter-into-supply-agreement-with-sumitomo/