Renewable Energy Lures Lithium Producer To Deep Red State

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Last Updated on: 3rd February 2025, 10:28 am

In yet another sign of an identity crisis among Republican-dominated US states, a massive new lithium refinery is taking shape in Oklahoma. The new venture is a poke in the eye of the state’s powerful oil industry, considering that its target is the EV battery market. Adding to the hurt, the developer of the project, Stardust Power, cites the wind-rich state’s renewable energy profile as one of the bottom line benefits of setting up shop in Oklahoma.

And The First State To Ban Renewable Energy Will Be…

Somewhat ironically, just as Stardust was preparing to break ground on the new lithium refinery, Oklahoma lawmakers were reportedly mulling a statewide ban on new renewable energy projects. If they succeed, that would make Oklahoma the first state to impose such a ban, beating out Texas for the honor.

Texas actually has a head start in the matter. Republican office holders in Texas have been erecting roadblocks against sustainable investing over the past several years despite their home state’s leading position in both the wind industry and the solar industry.

That may be so, but the news organization Heatmap News is guessing Oklahoma will beat Texas to the punch.

“There’s a nascent, concerted effort to make Oklahoma the first state to ban new renewable energy projects. And it’s picking up steam,” observed Heatmap reporter Jael Holzman on January 8.

“If anything, grassroots angst toward the energy transition has only surged in many pockets of the country since passage of the nation’s first climate law – Inflation Reduction Act – in 2022,” Holzman continued. “Nowhere is this more true than Oklahoma, which on paper resembles a breadbasket of possibilities for the “green” economy.”

Renewable Energy Attracts Clean Tech Manufacturers

Despite the pushback, the availability of zero emission wind power has made Oklahoma a go-to location for businesses looking to reduce their carbon footprints. Last summer the US Energy Information Agency took stock of the skyrocketing growth of renewable energy in Oklahoma, noting that renewables covered 45% of in-state electricity generation in 2023, up from just 19% in 2013, largely due to growth in the wind sector. EIA calculates that wind accounted for 94% of the state’s renewable generation in 2023, with hydropower, biomass, and solar contributing the remainder.

With that in mind, it’s no surprise that Stardust announced plans to put up more than $1 billion to establish a lithium refinery at a 66-acre plot in the Southside Industrial Park in Muskogee last year. “Oklahoma is recognized as an emerging national leader in sustainable power, including solar and wind, supporting Stardust Power’s commitment to limit its carbon footprint,” the company emphasized in a press release dated January 11, 2024, while also drawing attention to Muskogee’s status as a multi-modal transportation hub.

New Lithium Refinery: Who’s Gonna Pay For All This?

In last year’s announcement, Stardust also cited its eligibility for a $257 million incentive package, from a combination of state and federal funds. “The Company may also be eligible for further federal grants and or incentives offered by the Department of Energy and the Department of Defense,” Stardust added.

Well, that was then, when President Biden was still in office. Now that President Trump occupies the Oval Office, everything is up in the air. One of his first acts was an Executive Order freezing all federal grants and other disbursements. A coalition of state attorneys general promptly sued, and a federal judge eventually issued an injunction against the freeze. However, that judgement only provided relief to projects in the 23 states represented by the coalition: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Mexico, North Carolina, New Jersey, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia.

So, where does that leave Oklahoma as a national centerpiece of battery-grade lithium refining? That remains to be seen, but nobody seemed to be worried on January 22, when Stardust held a groundbreaking ceremony with top Oklahoma officials in attendance.

“With continued support from the State of Oklahoma, especially Governor Kevin Stitt, we are moving forward to becoming one of the country’s leading suppliers of battery-grade lithium,” said the company’s founder and CEO, Roshan Pujari, in a press statement marking the occasion.

“Oklahoma’s leadership in sustainable energy aligns with Stardust Power’s commitment to help secure America’s energy future by onshoring critical mineral supply chains and supporting American jobs,” the company added, noting that initial 66-acre site at the Port of Muskogee has the opportunity to sprawl into an adjacent 40-acre parcel.

“Sustainability is a core principle at Stardust Power, and this refinery reflects the commitment to responsible corporate practices, climate action, and the energy transition,” Stardust emphasized.

The two-phase project will begin with a production line targeting up to 25,000 metric tons year, which works out to about 27,558 US tons.

If all goes according to plan, Phase II will bring the total capacity up to about 55,116 tons with the help of a second production line

Oklahoma And Renewable Energy: It’s Complicated

As enthusiastically described by Oklahoma Lieutenant Governor Matt Pinnell, the Stardust project is just one indication that the state’s renewable energy profile is an engine of fiscal health. “This project not only strengthens our state’s position as a leader in sustainable energy, but it also creates hundreds of good-paying jobs and drives economic growth for our communities,” Pinnell said to mark the groundbreaking.

“By attracting innovative companies like Stardust Power, Oklahoma is ensuring that we remain at the forefront of America’s energy future,” Pinnell emphasized.

That depends on a lot of things happening over there in Washington, DC. If the Stardust project does manage to get off the ground, it will represent an interesting confluence of Oklahoma’s renewable energy resources with its fossil energy past and present.

Among other supply chain resources, Stardust is depending on the oil and gas industry to supply it with raw lithium in the form of the briny wastewater produced as a byproduct of drilling. That’s not a particularly sustainable solution, though it does avoid the environmental, social, and cultural conflicts that attend new lithium mines.

“The sourcing of feedstock from produced water has several advantages, including limiting exploration risk as the water is already produced, limiting risks in obtaining permits, as the wells are already in production, localizing DLE creates logistical efficiency, and helping diversify supply while the Company integrates vertically,” Stardust explains, with DLE referring to new direct lithium extraction technology.

If Stardust somehow manages to avoid the Trump chopping block, lithium brine produced from geothermal wells could also be in play. If you have any thoughts about that, drop a note in the comment thread.

Also, if you’re in the mood for writing anything about the Trump chopping block, it might help if you drop a note to your representatives in Congress.

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Image (cropped): The battery-grade lithium producer Stardust Power is leveraging renewable energy to set up shop in Oklahoma…if it survives the Trump chopping block, that is (courtesy of Stardust Power).