Stardust Power, a lithium refiner that provides services to the electric vehicle industry, agreed on Tuesday to go public in the United States through a merger with a blank check company in a deal valued at $490 million.
Once a niche metal used mostly in ceramics and pharmaceuticals, lithium has become one of the most in-demand metals in the world as traditional automakers such as Stellantis and Ford embrace electric vehicle technology.
The world's largest lithium producers say they remain bullish on long-term demand for the battery material, despite a recent drop in prices amid concerns that the adoption of electric vehicles is slowing.
Stardust Power said it plans to build a lithium refining facility in Greater Tulsa, Oklahoma, with an annual capacity of 50,000 tons of U.S. battery-grade lithium.
The special purpose acquisition (SPAC) transaction with Global Partner Acquisition Corp. II is expected to close in the first half of next year, after which Stardust Power will be listed on the NASDAQ under the ticker symbol "SDST."
SPACs, a publicly traded vehicle raised to merge with private companies, was once the hottest stock on Wall Street but lost steam as regulatory scrutiny, high interest rates and market volatility dampened investor enthusiasm.
