Stardust Power, a development stage US manufacturer of battery-grade lithium products, and Global Partner Acquisition II today announced a definitive merger agreement with a pro forma implied enterprise value of $490 million for the combined company.
If approved, Stardust Power would liste on the Nasdaq under new ticker symbol SDST.
The SPAC is now led by executives of Antarctica Capital, an international investment firm headquartered in New York with assets under management of approximately $1.5 billion as of Dec. 31, 2022.
A deadline extension approved early this year led to redemptions that removed about $265 million in the SPAC’s trust, or close to 87%. At the same time, Global Partner II switched sponsor control under a plan in which Endurance Global Partner II was to loan the sponsor up to $3 million in cash. The SPAC’s sponsor would then issue an unspecificed amount of equity securities to Endurance. As part of that agreement, control of the sponsor was transferred to affiliates of Antarctica Capital Partners.
The new CEO, Chandra R. Patel, is the founder of Antarctica Capital and has served as the managing partner of Antarctica Capital since 2010.
Global Partner II initially announced its intent in September to liquidate, then reversed course less than three weeks later, announcing a letter of intent with an unnamed target, presumably Stardust Power based on today’s announcement
With anticipated increases in EV adoption over the next decade, demand for lithium is expected to increase by approximately 5,700% by 2030, as lithium-ion batteries will be needed to power those vehicles. While lithium resources are plentiful in the U.S., accounting for up to 17% of global reserves, little domestic lithium refining capacity exists, the parties noted in the deal announcement. Stardust Power’s strategy is to become a leading domestic producer of battery grade lithium products. Read more.