Construction Milestone at Hombre Muerto West Raises Questions on Production Risks
Galan Lithium has delivered the nanofiltration plant to its Hombre Muerto West site, pushing Phase 1 construction to 85% completion and targeting first lithium chloride concentrate production in H1 2026.
- Nanofiltration plant delivered and assembly underway at Hombre Muerto West
- Phase 1 construction approximately 85% complete
- Sylvinite evaporation ponds for accelerated lithium chloride production completed
- First processed lithium brine expected early Q2 2026
- Production expansion plans supported by recent capital raising
Progress at Hombre Muerto West
Galan Lithium Limited (ASX, GLN) has provided a significant update on the development of its Hombre Muerto West (HMW) lithium brine project in Argentina. The delivery of the nanofiltration plant to site marks a pivotal milestone in the Phase 1 construction, which is now approximately 85% complete. This progress brings Galan closer to its goal of commencing lithium chloride concentrate production in the first half of 2026.
The nanofiltration plant, a critical component in Galan’s processing flowsheet, has been designed and constructed on an accelerated timeline. Its arrival and ongoing assembly at the HMW site underscore the company’s commitment to advancing its lithium extraction capabilities efficiently. Galan’s technical team, alongside specialists from Authium Limited, are leading the on-site assembly, with commissioning expected to follow shortly.
Infrastructure Advancements and Production Targets
Complementing the nanofiltration plant, the construction of sylvinite evaporation ponds has been completed. These ponds are designed to speed up the evaporation process of the processed brine, enabling quicker production of lithium chloride concentrate. This infrastructure is essential for achieving the targeted production rate of 5,200 tonnes per annum of lithium carbonate equivalent (LCE) in Phase 1.
Following a successful capital raising in January 2026, Galan is well-positioned to continue construction activities and scale operations. The company anticipates processing its first lithium brine in early Q2 2026, with lithium chloride concentrate production slated for the first half of the year. These milestones are critical as Galan moves from development to near-term production, reinforcing its standing in the competitive lithium market.
Strategic Positioning and Future Outlook
Galan’s Hombre Muerto West project is notable for its substantial mineral resource, ranking among the top ten lithium brine projects globally. The resource boasts a low impurity profile, which is advantageous for cost-effective processing and product quality. Additionally, the project benefits from Argentina’s RIGI framework, offering fiscal stability and tax incentives that enhance its economic viability.
Looking ahead, Galan has permits in place to expand production to 21,000 tonnes per annum LCE, with potential for further growth up to 60,000 tonnes through subsequent phases. The company’s exploration licences near the Greenbushes Lithium Mine in Western Australia also hint at a diversified growth strategy beyond Argentina.
As Galan approaches its first production, the market will be watching closely to see how the commissioning of the nanofiltration plant and subsequent processing milestones unfold. Successful execution could position Galan as a significant player in the lithium supply chain, particularly as demand for battery-grade lithium continues to rise globally.
Bottom Line?
With Phase 1 nearing completion, Galan Lithium is poised to transition from development to production, setting the stage for growth in a tightening lithium market.
Questions in the middle?
- Will the nanofiltration plant commissioning meet the targeted timelines without delays?
- How will Galan manage operational risks as it scales production in Phase 1 and beyond?
- What impact will global lithium market dynamics have on Galan’s expansion plans?
