A Cross-Border Lithium Deal Sparks New Momentum

A US Canada lithium pact hints at growing regional urgency for secure supply

23 Oct 2025

North America’s effort to build a more secure lithium supply chain has taken a small but notable step as Stardust Power of the US and Prairie Lithium of Canada advanced a non binding letter of intent for future deliveries of battery materials. The agreement signals a rare cross border alignment at a time when domestic manufacturers are seeking dependable regional sources of lithium.

The move comes as electric vehicle demand continues to rise and US policymakers attempt to reduce dependence on foreign suppliers. Stardust Power, which is planning a large refinery in Oklahoma, has been looking for consistent feedstock to support its projected output. Prairie Lithium, developing a brine based resource in Saskatchewan, has emerged as a potential long term partner. Under the LOI, Prairie would provide up to 6,000 tonnes of lithium material a year from 2027, a small share of Stardust’s planned 50,000 tonne annual capacity.

Executives said the letter reflects growing urgency among North American players to secure materials ahead of the next stage of battery manufacturing. A Stardust spokesperson said the LOI represents important progress toward stabilising domestic refining and strengthening the company’s path to full financing and development. Analysts note that such alliances are becoming more common as the region seeks to compete with producers in Asia that dominate processing capacity.

For Prairie Lithium, the agreement offers early visibility on potential demand. Smaller developers often struggle to raise capital without a clear route to market, and a prospective buyer can speed project timelines. The alignment with Stardust may help attract investment and reinforce Canada’s role as a supplier of raw materials for the electric vehicle sector.

Challenges remain. The LOI is not binding, and both companies must progress through permitting, technical work and long term commercial talks before any deliveries are confirmed. Still, industry observers view the collaboration as evidence of strengthening regional cooperation and expect further transactions as North America tries to build a more stable battery materials network.

If the partnership advances to a binding contract, executives say it could support a more competitive continental supply chain and improve the region’s long term lithium outlook.