Galan Lithium Breaks Ground on HMW Ramp-Up, Targets H2 2026 Sales

Galan Lithium has started production ramp-up at its Hombre Muerto West project in Argentina after wet commissioning produced the first processed lithium chloride. The company holds roughly 10,000 tonnes of lithium carbonate equivalent in evaporation ponds and carries A$35.5 million in cash with no debt. First lithium chloride concentrate sales are targeted for the second half of 2026.

The ramp-up targets an annualised rate of 4,000 tonnes of LCE. The nanofiltration plant has been tested with raw brine at low pressure and pre-concentrated brine containing about 0.5% lithium under high pressure. Independent laboratory assays confirmed impurity separation matches the plant's design specifications. Processed material is now accumulating in final evaporation ponds, where water will be removed to produce concentrate at 6% lithium for sale under Phase 1 offtake arrangements.

Severe winter weather reduced evaporation rates and forced temporary operating pauses for safety reasons. The company reported no injuries or safety incidents. Managing director Juan Pablo Vargas de la Vega said the project is now de-risked from start to finish. He noted that Galan will be the only greenfield lithium project coming online in 2026, and the brine inventory provides immediate feedstock for the ramp-up.

Pond construction for expanding Phase 1 capacity from 4,000t to 5,200t of LCE per annum is scheduled to begin in the September 2026 quarter. The uplift is targeted for the first half of 2027. The nanofiltration plant was designed to support the higher rate without modifications. The existing lithium chloride inventory was accumulated over more than two years to underpin sustained processing.

Galan holds construction permits for a Phase 2 development of 21,000tpa LCE. The company has outlined a staged pathway through four phases to potential production of 60,000tpa. Vargas de la Vega said the scale and quality of the HMW resource underpins the project's potential as a significant supplier into the global lithium market.

The HMW project sits in Argentina's lithium triangle, where Albemarle, Livent and other producers already operate. Argentina accounted for roughly 5% of global lithium production in 2025, with most output coming from the country's northwestern salt flats. The ramp-up at HMW adds to a growing pipeline of Argentine projects as global lithium demand is projected to rise 20-25% annually through 2030, driven by electric vehicle adoption and battery storage deployment.

In Western Australia, Galan secured up to A$250,000 of co-funding through the state government's Exploration Incentive Scheme for an airborne gravity survey at the Greenbushes South Project. Fixed-wing acquisition is scheduled for September 2026, subject to weather. The survey will cover the existing project tenure and the recently granted licence E70/4889. It will map the amphibolite host sequence and the Donnybrook–Bridgetown Shear Zone, using density contrast between lithium-bearing pegmatites and amphibolite to identify prospective positions. Results will be integrated with soil geochemistry to define and rank drill targets.

Cash outflows in the June quarter were mainly directed to completing construction and commissioning at HMW, alongside evaporation pond works, site infrastructure and corporate overheads.