Stardust Power Inc.

there will be a question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Joanna Gonzalez, Director of Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, everyone. Before management begins their formal remarks, We would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statements. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the SEC. We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We refer you to our filings with the SEC for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties, identified under the caption Risk Factors in our recent filings. You may get Stardust Power's SEC filings by visiting the SEC website at www.sec.gov. I would like to remind everyone this call is being recorded and will be made available for replay via a link available in the Investor Relations section of Stardust Power's website. Now I will turn the call over to Stardust Power's CEO, Roshan Pajari. Roshan?

Thank you, Joanna, and thank you all for joining us today. Welcome to the Stardust Power year-end 2024 earnings call. I'd like to briefly discuss the macro environment before providing an update on the quarter and subsequent developments of Stardust Power's lithium refinery. The global lithium market has seen a slight improvement in pricing recently, with some experts forecasting a significant surge in prices around 2026 to 2027, aligning closely with the timeline for Stardust Power's Refinery Phase 1 to potentially come online. This pricing trajectory presents a promising opportunity for Stardust Power, as the current business model remains viable at today's prices, indicating profitability. Even with fluctuations in pricing, we see the long-term outlook for lithium remain strong, driven by an increasing demand across multiple sectors. The Energy Independence Order signed by President Trump in January plays a pivotal role in shaping the current landscape for critical minerals in the United States, including lithium refining. This executive order underscores the need for increased energy independence and the securing of supply chains for critical minerals within North America. This policy is advantageous for U.S. manufacturing lithium refining, and in line with Stardust Power's vision of being a North American source, refined, and end customer-focused business. By bridging the critical refining gap in the lithium supply chain, Stardust Power stands to benefit from this shift towards domestic sourcing and refining capabilities. The emphasis on energy independence is further amplified by the U.S. government's prioritization of securing its energy resources which could bolster local companies like Stardust Power. The company's differentiators, including its speed to market and innovative approach, position it well to meet the demand for domestically refined lithium while supporting the U.S. energy security goals. Tariffs are currently a major topic in the North American critical minerals market, particularly between the United States and Canada. With ongoing geopolitical tensions and trade negotiations, the tariff landscape is evolving fast. These tariffs may have significant implications for supply chain costs and profit margins for lithium producers in both countries. However, the US's push for energy independence could also lead to policy that favors domestic production and refinement. As a result, companies like Stardust Power focused on North American production, may be well positioned to navigate the complexities of these tariffs and leverage them for competitive advantage. The company may elect to leverage the foreign trade zone at Port Muskogee to offset future impact from relevant tariffs, if any, and may seek to include our site in Muskogee as part of a free trade zone. Despite President Trump's language on EV targets, which could temporarily impact demand for lithium and other critical minerals used in EV, analysts remain optimistic about the long-term outlook for lithium and EV adoption. Global demand for lithium is expected to remain strong, driven by applications beyond just the EV market, primarily energy storage systems, or ESS. Military applications, handheld devices, and fast track data centers, especially for AI technologies, are all emerging as significant consumers of lithium, accelerating and diversifying demand. The multitude of applications provide a strong and expanding market base for lithium, ensuring continued growth in the industry. The lithium market is currently experiencing a dynamic period of rapid change, driven by shifting geopolitical policies, technological advancements, and evolving supply chain needs. As a result, Stardust Power is maintaining close connections with policymakers and industry leaders in Washington, D.C. to stay ahead and influence regulatory changes and cultivate strategic alliances. This proactive approach not only ensures the company's interests are aligned with national policies, but also helps establish valuable relationships that could open doors for government support or public-private partnerships. Currently, the lithium and critical minerals market is entering an exciting and complex phase with both challenges and opportunities on the horizon. With its unique position, differentiated business model, and focus on speed to market, Stardust Power is well positioned to capitalize on these trends as the industry evolves. Turning to some recent announcement and updates, we have been busy. On December 17th, we announced the purchase of our construction ready 66 acre site in Muskogee, Oklahoma, which includes a right of first refusal on an additional 40 acres. We have secured the necessary stormwater discharge permit and are cleared to begin construction. We are in the process of air permitting. The Oklahoma Department of Environmental Policy has approved our stormwater pollution prevention plan. We have applied for and received the administrative approval for our air permit, obtained a permit number, and await the technical approval for the same, putting us on track for final approvals. Our refinery is designed to be only a minor source of air emissions and is such as aligned with our sustainability goals. We do not anticipate substantial regulatory resistance. Our team marked the start of the new year with our groundbreaking ceremony on January 22nd in Muskogee, marking a major milestone in the company's history. We reached this point in less than one year of being a publicly traded company. It was a well-attended event marking the start of a brilliant future with key local and state officials, including Lieutenant Governor Matt Pinnell, Mayor Patrick Cahill, and former Mayor Marlon Coleman in attendance. This ceremony represents the beginning of a project that will not only support America's transition to energy independence, but also create hundreds of well-paying jobs and boost Oklahoma's economy. For Start Us Power, this marked the start of initial groundwork and preparation for heavy construction. We have seen tremendous support from the community for our project, for which we are extremely grateful, and we look forward to advancing our strategic and operational plan for the year. We were delighted to announce our agreement with Sumitomo Corporation. The offtake agreement outlines a potential long-term supply deal for 20,000 metric tons of lithium carbonate annually, with the possibility of increasing that amount to 25,000 metric tons which represents 80 or up to 100% of our first line of production or a total of 40% or up to 50% of our total projected 50,000 metric tons per annum capacity. The deal spans 10 years with an option for Sumitomo to extend to 15 years. Pricing will be based on market rates published by Fast Markets or another mutually recognized price reporting agency and includes provisions that would allow parties to adjust pricing as necessary to accommodate specific customers. Sumitomo is one of the largest trading houses globally, and this agreement struck with Sumitomo creates a strong strategic partnership. They add value in multiple ways and are a great partner for us. We are proud to be working together. While this agreement was non-binding, we are working towards signing a definitive agreement For the full details, please see our corresponding 8K filing. We made a preliminary announcement on October 8th, 2024 regarding licensing concentration technologies belonging to KMX Technologies. We are happy to say all terms were agreed and the definitive agreement was signed on February 10th, which now gives Stardust Power exclusive access to KMX's advanced vacuum membrane distillation or VMD technology across the U.S., Canada, and select international markets for the field of lithium. This technology may help Stardust Power reduce energy consumption, water usage, and logistics costs by efficiently concentrating lithium feedstocks while also enhancing sustainability in our operations. By incorporating VMD, We aim to improve the economic and environmental performance of our lithium production. We are excited to have this technology added to our tech stack as we continue to execute our operational planning. Turning to business updates. Primera USA continues to progress the FELL Level 3 study, aka our definitive feasibility study. We are now eight months into the study and around 98% of the engineering study has been completed. The process design in CAPEX draft has been completed and work towards the final report is underway. In December, the Milestone 2 model review was held and reconciled Milestone 1 model review comments. Milestone Model 3 has been completed and the layout is locked for the FFEL 3 effort. In addition, what if process review and risk workshops were completed which identified and addressed potential risk to the project. Stardust Power on November 26, 2024 received an executed permit from the Oklahoma Department of Environmental Quality authorization to discharge under the OPDES Stormwater Construction General Permit OKR10. The OKR10 permit allows owners or operators of construction sites to discharge stormwater runoff, provided they comply with specific requirements to minimize pollution and environmental impact. In addition to permitting activities, the site SWPPP plan, Stormwater Pollution Prevention Plan, has been finalized and approved. The month of December 2024 included efforts for the Oklahoma air permitting. Third branch engineering and primary group working with Stardust Power have progressed the application and data to internal review status. Once reviewed, the air permit application will advance to the Oklahoma Department of Environmental Quality administrative review process. In recent months, Stardust Power has participated in key national, local, and state-level events such as PDAC, Port Muskogee Business and Industry Awards, the Oklahoma Business Roundtable, the Environmental Federation of Oklahoma Annual Meeting and Trade Show, and the Federal Reserve Annual Energy and Economy Meeting. Turning to upcoming engineering milestones, We are progressing to the completion of the study and into the final fell report followed by efforts. We have been working with our lead financial advisor for the refinery project finance for both debt and equity. We are working to complete the accompanying reporting materials for institutional investors. We are sharply focused on. risk removal through value engineering and taking advantage of the local and state contracting and service providers, along with guidance and action from local and state governments. We are excited to announce three additions to the Stardust Power Team. First, Chris Solano joins us as Chief Operating Officer. With over 20 years of experience in executive leadership, particularly in the energy sector, Chris brings a wealth of expertise to our team, having previously served as the president and CEO of IHI E&C International Corporation. He holds a law degree and is a graduate of the prestigious MIT, which complements his broad experience in the legal, energy, and engineering sectors. Chris brings extensive international experience in the oil and gas industry with a strong background in drilling operations management technology and well site development. In his new role, he will oversee the company's refinery development and the upstream lithium supply initiatives and processing operations, including discussions around sourcing and site development. He is instrumental in advancing operational efficiency and driving the growth of our lithium projects as we continue to scale. Secondly, In the finance team, we are pleased to welcome Nithya Ramesh as an accounting manager. Nithya is a certified public accountant with over eight years of experience in external audits, financial accounting, and internal controls, having worked with leading firms like Grant Thornton, Deloitte, and AMD. At Stardust Power, Nithya will leverage her extensive background to enhance financial operations and contribute to the company's continued growth and success. Third, we are pleased to welcome Martin Buttenshaw to our Board of Directors. With extensive experience in the metals and mining industry, Martin has held leadership roles at companies like McKay Precious Metals and Paula Investments. His track record in driving growth, overseeing strategic initiatives, and leading transformation in the mining and raw materials supply chain particularly for electric vehicles and renewable energy sectors, will be valuable as Stardust Power aims to scale and innovate in the lithium market. During the quarter, we raised a total of $4.1 million of capital, $3.55 million in debt, and $550,000 in a pipe offering, which were both accompanied by some stock and cash warrants. We were also able to raise 5.75 million VA public offering with a large institutional holder in January 2025, and an additional 2.9 million in March 2025 through a warrant inducement with that investor. We have been thoughtful of capital allocation so as to balance shareholder dilution and current cash needs to take us through the FID stage. Uday will cover this in more detail in his remarks shortly. In recent weeks, a select number of Stardust Power insiders sold a limited number of shares to cover the tax liability associated with vested employee stock plan awards. These shares were sold pursuant to a prearranged 10b-51 plan. In Q1-25, we made public filings to disclose these sales. These automated sales are designed to avoid conflicts of interest or market timing concerns and were established before recent market changes, so they do not reflect any shift in management outlook or business fundamental. The sales, which are a small amount relative to the total float, were planned to be executed orderly and with minimal impact on liquidity as we remain committed to compliance, good governance, and long-term shareholder value. Our focus continues to be on executing our strategic initiatives and positioning Stardust Power for future growth. Management and insiders continue to be significant holders of stock, and we will continue to be going forward. Now turning to the share price. We thank all of our shareholders for their continued support and long-term belief in Stardust Power. We understand the recent volatility and price depreciation in our stock can be concerning. We believe that this decline is largely due to certain business combination dynamics, the expiry of the lockup for our initial investors, the effect of recent financing and broader market uncertainties, including political factors and weaker sentiment in the larger macro space. This volatility is in line with trends noted with other business combinations and to be expected as old investors make way for new investors to buy into the stock and vision going forward. We believe that certain shareholders elected to sell, creating substantial selling pressure on our stock. Despite these challenges, I want to reassure you that the fundamentals of Stardust Power remain strong and unchanged. We continue to be laser focused on executing our business plan, and we are confident that as we reach key milestones with our project, we will create significant value for our shareholders. The true test of a great company is not how it performs in good times, but how it navigates through uncertainty and adversity. We have some exciting upcoming catalysts for the company over the next six months. As mentioned, Primera will complete and finalize our FEL3 engineering study, which was started in July last year, and will outline what the refinery will look like, its full spec and cost breakdown. We continue to work with our financial advisors, MUFG, and other financing partners to line up project finance, which will culminate at FID, and then enable us to move forward and start building up phase one of our refinery, which had been previously anticipated to take 18 to 24 months to build. We will also have more updates and news on securing our upstream supply, which will enable us to reach 50,000 metric tons per annum refining capacity once at full production. As mentioned earlier, we are not sitting still and have been busy. Our objective is speed to market and to be achieved with an optimized construction schedule, value engineering, and a stable supply chain. With that in mind, we are working day in and day out to build an ecosystem that can help us become source secure, technologically robust, and ready for the next stage of growth. All of these upcoming catalysts are important for investors as they are potential inflection points to become shareholders and see additional value creation and to be part of the Stardust Power Storage. And with that, I now turn to Uday Devaswar, our Chief Financial Officer, for his remarks on financials. Uday?