Galan Lithium has finished commissioning at its Hombre Muerto West project in Argentina, processing its first lithium chloride and aiming for product sales in the second half of 2026. The company is also preparing to expand production capacity by 30% in early 2027.
- First lithium chloride processed and discharged at Hombre Muerto West
- Wet plant commissioning completed, optimisation phase underway
- Phase 1 production capacity set to increase from 4 ktpa to 5.2 ktpa LCE
- Brine inventory of circa 10,000 t LCE supports ramp-up
- Plans for Phase 2 development and financing continuing
Commissioning Milestone Achieved at Hombre Muerto West
Galan Lithium Limited (ASX:GLN) has crossed a critical operational threshold by completing commissioning at its 100%-owned Hombre Muerto West (HMW) lithium brine project in Argentina. The company has processed its first lithium chloride (LiCl) concentrate, which has been discharged into the final evaporation ponds. This processed brine will undergo a roughly three-month evaporation phase to concentrate lithium chloride to about 6%, setting the stage for product sales targeted in the second half of 2026.
Managing Director Juan Pablo Vargas de la Vega highlighted the significance of this achievement, describing the project as fully de-risked from start to finish. Galan positions itself as the only greenfield lithium project expected to come online in 2026, aiming to tap into a favourable lithium pricing environment and contribute new supply to the battery materials market.
Optimisation and Production Ramp-Up Underway
Following the wet commissioning phase, which included successful nanofiltration plant operations demonstrating excellent impurity rejection consistent with design specifications, Galan has entered an optimisation phase. Production rates remain variable as the plant works towards stabilising an annualised output of 4,000 tonnes per annum (ktpa) lithium carbonate equivalent (LCE) under Phase 1.
The company has strategically accumulated a brine inventory of approximately 10,000 tonnes LCE in its evaporation ponds, providing immediate feedstock to sustain the ramp-up without interruption. This inventory buffer is crucial as Galan moves to meet initial production targets and prepare for expansion.
Expansion Plans to Boost Capacity by 30%
Galan is advancing construction of additional evaporation ponds to increase Phase 1 capacity from 4 ktpa to 5.2 ktpa LCE, with pond works expected to commence shortly and capacity uplift targeted for the first half of 2027. The nanofiltration plant has been designed with flexibility to support this expansion, reflecting the company’s low-risk, staged growth strategy.
The broader development plan envisions a four-phase build-out to reach up to 60 ktpa LCE, anchored by HMW’s status as a top-10 global lithium resource by contained LCE. The resource’s high purity and low impurity profile position the project favourably on the cost curve, with expectations to be in the first quartile of industry costs once fully operational.
Regulatory and Market Positioning
Galan’s project benefits from the RIGI investment framework in Argentina, offering 30 years of fiscal stability and income tax benefits. The company also maintains exploration licences near the Tier 1 Greenbushes Lithium Mine in Western Australia, diversifying its asset base.
The recent operational update prompted the ASX to lift its trading suspension on Galan shares, reinstating quotation immediately after the announcement. This follows a series of milestones including Phase 1 construction completion and a A$40 million capital raise to support expansion and working capital needs, as detailed in the company’s earlier A$40 million capital raise and Phase 1 completion reports.
Bottom Line?
Galan’s commissioning success and imminent lithium chloride sales mark a pivotal step, but stabilising production and executing expansion will be key to realising its growth ambitions.
Questions in the middle?
- How quickly will Galan stabilise production at its targeted 4 ktpa LCE rate?
- What are the financing plans and timelines for Phase 2 development to reach 21 ktpa LCE?
- How will evolving lithium market dynamics impact offtake agreements and pricing for Galan’s product?