A major move to create Oklahoma’s first lithium processing facility for the eventual manufacturing of EV batteries was announced by developer Stardust Power Inc. It puts Stardust closer to eventual refining of lithium in the state.
The Connecticut based company, which launched operations in December of 2024 in Muskogee said it had successfully completed a FEL 3 report, also referred to as the Front-End Loading 3 Report for its lithium processing facility. The report was led by Primero USA, a globally recognized engineering, procurement, and construction firm with deep expertise in lithium processing projects.
The FEL 3 delivers an advanced design with key optimizations to improve efficiency, reduce costs, and strengthen overall project economics. Phase 1 is planned at 25,000 metric tons per annum (mtpa) of battery-grade lithium, with estimated capital expenditures of approximately $500 million, nearly $200 million below the initial estimate, at a 90% probability of achievement. This figure includes owner’s cost, contingency, and escalation. Construction is expected to take approximately 24 months from the start of major work to mechanical completion, providing investors with greater cost visibility and schedule certainty.
Completion of the FEL 3 represents one of the most significant milestones in the development of Stardust Power’s processing facility. The report incorporates key technical advancements, including a comprehensive 3D process model and a detailed cost estimate for both construction and operations. As a result, capital and operating cost forecasts have improved meaningfully from previous studies, including those established during the FEL 1 phase completed in August 2024, with contingency reduced from the prior 40% to a significantly lower level, reflecting increased project definition and confidence.
“This milestone brings Stardust Power within clear reach of a Final Investment Decision and meaningfully reduces risk for our investors and stakeholders,” said Roshan Pujari, Founder and Chief Executive Officer of Stardust Power. “Working closely with Primero, we have validated our technical assumptions and strengthened the efficiency and economics of the project. The completion of the FEL 3 marks a clear inflection point, signaling our readiness to transition from developer to operator with improved cost certainty, defined scope, and a clear path to major construction. The FEL 3 is one of the last major capital-intensive steps before construction. With key milestones now achieved, we are preparing to build a cornerstone of America’s energy infrastructure.”
Primero USA was selected as the Company’s FEL 3 engineering partner in August 2024 following an exhaustive and competitive selection process. Primero’s selection was based on its proven capabilities in lithium refining and EPC project execution. Matthew Taylor, General Manager, Operations, North America for Primero Group commented, “The Primero USA team is proud to have supported Stardust Power in reaching this milestone on their lithium refinery project. The FEL3 report highlights the strength of our collaboration and reinforces Primero’s position as a trusted industry partner. We are excited to see Stardust Power’s progress, bringing a next-generation lithium refinery closer to operation and advancing domestic production capabilities, while supporting the growth of the USA’s critical minerals industry.”
The Muskogee refinery is planned in two phases, each designed to produce up to 25,000 mtpa of battery-grade lithium carbonate. At full capacity, the facility will deliver 50,000 mtpa, positioning it among one of the largest lithium refineries in the United States and a key contributor to America’s energy security and domestic battery supply chain. The FEL 3 not only advances engineering and project economics, but also reinforces Stardust Power’s commitment to health, safety, environmental responsibility, and community impact. The facility is designed to minimize air emissions, recycle water, safely manage by-products, and operate with zero liquid discharge. In parallel, the project is expected to create hundreds of well-paying jobs across engineering, construction, and operations. Stardust Power is committed to hiring locally in Muskogee and across Oklahoma, leveraging the state’s strong energy workforce and Tulsa’s deep labor pool, while drawing on national expertise where needed.
“We are committed to the highest standards of health, safety, and environmental performance,” said Chris Celano, Chief Operating Officer at Stardust Power. “Our project plans reflect that commitment, ensuring that the Muskogee facility is not only modern and efficient but also a responsible and engaged member of the local and regional community.”
With the FEL 3 now complete, Stardust Power is rapidly advancing toward its FID, the critical step that will launch Phase 1 major construction of its Oklahoma lithium refinery. To further de-risk the project and provide transparency for stakeholders, an independent third-party engineering firm has been engaged to conduct a comprehensive review of the FEL 3, validating assumptions, assessing risks, and identifying potential areas of optimization ahead of FID.
Source: press release