Galan Lithium Progresses HMW Production Ramp-Up Toward First Sales

Galan Lithium (ASX: GLN) has moved into the production ramp-up and optimisation phase at its 100%-owned Hombre Muerto West (HMW) lithium brine project in Argentina following wet commissioning and the production of its first processed lithium chloride.

The company is targeting stabilised production at an annualised rate of 4,000 tonnes of lithium carbonate equivalent (LCE), with lithium chloride concentrate production and first sales targeted for the second half of 2026.

Processed material is accumulating in the final evaporation ponds, while independent laboratory assays have confirmed impurity separation from the nanofiltration plant is consistent with its design specifications.

Around 10,000t of LCE held in the evaporation ponds provides immediate feedstock for the ramp-up, which is supported by a debt-free cash balance of A$35.5 million at 30 June.

Plant Optimisation Advancing

Galan completed electrical and mechanical testing before commissioning the nanofiltration plant with raw brine at low pressure and then pre-concentrated brine containing about 0.5% lithium under high pressure.

The processed lithium chloride is being discharged into final evaporation ponds, where water will be removed to produce concentrate containing 6% lithium for sale under the HMW Phase 1 offtake arrangements.

Severe winter weather reduced evaporation rates and led to temporary operating pauses for safety reasons, although Galan recorded no injuries or safety incidents and remains confident of reaching its 4,000t annualised LCE target during 2026.

“Following completion of Phase 1 construction, we successfully commissioned the HMW plant and produced our first processed lithium chloride, with the mining operation now de-risked from start to finish,” managing director Juan Pablo Vargas de la Vega said.

“To our knowledge, Galan will be the only greenfield lithium project coming online in 2026 and, with circa 10,000t LCE of brine inventory ready to process, we are focused on a disciplined ramp-up to first product sales in the second half of the year."

Capacity Growth Planned

Pond construction for the expansion of Phase 1 capacity from 4,000t to 5,200t of LCE per annum is scheduled to begin in the September 2026 quarter, with the uplift targeted for the first half of 2027.

The nanofiltration plant was designed to support the higher rate without modifications, while the existing lithium chloride inventory has been accumulated over more than two years to underpin sustained processing.

Galan holds construction permits for a 21,000tpa LCE Phase 2 development and has outlined a staged pathway through four phases to potential production of 60,000tpa.

The company believes the scale and quality of the HMW resource underpins the project’s potential as a significant supplier into the global lithium market.

Greenbushes Adds to Pipeline

At the Greenbushes South Project 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.

Fixed-wing acquisition is scheduled for September 2026, subject to weather, and will cover the existing project tenure and recently granted licence E70/4889.

The survey will map the amphibolite host sequence and the Donnybrook–Bridgetown Shear Zone beneath cover, using the density contrast between lithium-bearing pegmatites and amphibolite to help identify prospective positions.

Results will be integrated with soil geochemistry to define and rank drill targets, while Galan’s June-quarter cash outflows were mainly directed to completing construction and commissioning at HMW alongside evaporation pond works, site infrastructure, and corporate overheads.