Prairie Lithium (ASX:PL9) has signed a non-binding offtake agreement to supply Stardust Power with 6,000 tonnes of lithium carbonate equivalent per year from its namesake project in Canada.
Under the agreement, commercial shipments of lithium chloride from the Prairie Project to Stardust Power in Oklahoma, could start as early as 2027. The company notes the offtake confirms the economic viability and production potential of the Prairie Project.
Managing Director Paul Lloyd says securing this agreement with a US-based refinery marks a milestone for the broader North American lithium supply chain.
“This partnership anchors a reliable, cross-border supply corridor between Canada and the US – one that reduces dependence on overseas processing and ensures that lithium produced in North America stays in North America,” Lloyd says.
“By aligning our high-quality resource with a domestic refiner, we are helping to secure the foundation for North America to be an energy superpower. This alignment between companies, supports both economic growth and the development of a resilient, transparent North American lithium supply chain.”
Stardust Power CEO Roshan Pujari says as a near-term producer, Prairie Lithium is an “important” element of the supply chain.
“It will take an ecosystem approach to build resilient North American supply chains,” Pujari says.
According to the Department of Industry, Science and Resources (DISR), global lithium extraction is forecast to grow by more than 13% per year over the outlook period – reaching over 1.8 million tonnes of lithium carbonate equivalent by 2027.
Lithium demand remains strong, with the rising usage of stationary storage offsetting slowing growth in electric vehicle (EV) sales.
In the US, EV sales grew from just under 1.4 million in 2023 to 1.5 million in 2024. EV sales are expected to continue growing to 2.1 million in 2027, as reported by DISR.
Stardust Power is a developer of battery-grade lithium carbonate designed to bolster the US’ energy security. The company is developing a central lithium processing facility in Oklahoma with the anticipated capacity of producing up to 50,000 tonnes per year.
Prairie Lithium is focused on its namesake project located in Saskatchewan, Canada. The project, comprising over 345,000 acres, contains an inferred and indicated resource of 4.6 million tonnes of lithium carbonate equivalent.
Write to Aaliyah Rogan at Mining.com.au
Images: Prairie Lithium
