Galan Lithium Nears Production at Hombre Muerto West, Expands Greenbushes Footprint
Galan Lithium advances construction at its Hombre Muerto West project, targeting first lithium production in the first half of 2026, while strategically expanding its Greenbushes South tenure in Western Australia.
- Phase 1 construction at Hombre Muerto West on track for H1 2026 production
- Nano-filtration plant assembled and shipped, evaporation ponds completed
- Strategic expansion of Greenbushes South exploration licences
- Early completion of $20 million Clean Elements placement strengthens balance sheet
- Strong financial position with $15 million cash, no debt, and undrawn $6 million facility
Progress at Hombre Muerto West
Galan Lithium Limited has reported significant progress in the December 2025 quarter on its Hombre Muerto West (HMW) lithium brine project in Argentina. The company remains on schedule to commence first production in the first half of 2026, marking a pivotal transition from developer to producer. Key milestones include the successful assembly and testing of the Phase 1 nano-filtration plant in Sydney, which has since been containerised and dispatched to the site for commissioning early this year.
On-site construction has advanced with the completion of earthworks and concrete foundations for the process plant, alongside the redesign and construction of evaporation ponds 4 and 5 to support the initial 4,000 tonnes per annum lithium carbonate equivalent (LCE) production target. Galan’s coordination with contractors and strategic partners has ensured steady progress, all while maintaining a strong safety and environmental record.
Strategic Expansion in Western Australia
In a move that broadens its strategic footprint, Galan secured new exploration licences in the Greenbushes South region of Western Australia. These licences lie approximately two kilometres south of the world-renowned Greenbushes lithium mine, covering the interpreted continuation of the Donnybrook–Bridgetown Shear Zone, a key mineralising structure. This acquisition enhances Galan’s exposure to one of the world’s most prospective lithium districts and opens opportunities to test geological continuity with the Tier 1 Greenbushes system. Exploration activities are planned to commence in the latter half of fiscal 2026, subject to permitting.
Financial Strength and Funding
Galan’s financial position was bolstered by the early completion of the second tranche of a $20 million placement from the Clean Elements Fund, reflecting strong investor confidence in the HMW project. As of 31 December 2025, the company held $15 million in cash, carried no debt, and maintained an undrawn US$6 million prepayment facility. These funds underpin the ongoing construction activities and corporate overheads, positioning Galan well to fund Phase 1 to completion and support future growth initiatives.
Managing Director Juan Pablo Vargas de la Vega emphasised the transformative nature of 2026 for Galan, highlighting the improved lithium market conditions and the company’s readiness to capitalise on them. He also noted ongoing assessments to potentially expand Phase 1 production capacity beyond 5,000 tpa LCE by leveraging existing infrastructure.
Outlook and Market Context
Galan’s Hombre Muerto West project ranks among the top ten lithium brine projects globally by resource size and is positioned in the first quartile of the industry cost curve once operational. The company benefits from Argentina’s RIGI investment framework, offering fiscal stability and tax incentives, which further enhances project economics. With lithium demand recovering and market sentiment improving, Galan is strategically placed to deliver near-term production and generate cash flow, potentially reshaping its market standing.
Meanwhile, the Greenbushes South tenure expansion signals Galan’s intent to diversify and grow its resource base in a highly prospective jurisdiction, complementing its South American assets and providing optionality for future development.
Bottom Line?
As Galan Lithium approaches production and expands its strategic landholdings, the coming months will be critical in validating its growth trajectory amid a recovering lithium market.
Questions in the middle?
- Will Galan proceed with expanding Phase 1 capacity beyond 4,000 tpa LCE, and on what timeline?
- What initial exploration results can be expected from the Greenbushes South licences in FY2026?
- How will evolving lithium market dynamics impact Galan’s pricing and project economics post-production?
