Stardust Power Inc. (NASDAQ: SDST) saw its shares begin Tuesday in the red. The Greenwich, Conn.-based company, a developer of battery-grade lithium products, today announced the successful completion of the FEL 3 report, also referred to as the Front-End Loading 3 Report for its lithium processing facility located in Muskogee, Oklahoma.
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.
SDST shares lost 12 cents, or 4.3%, to $2.80.
