Galan Secures Lithium Offtake Deal to Supply US Partner

Galan Lithium

Authium Signs Long-Term Agreement for Lithium Chloride from Argentina

Galan Lithium has signed a binding lithium offtake agreement with US-based Authium to support the development of Galan’s Hombre Muerto West (HMW) lithium brine project in Argentina. The agreement covers the purchase of 45,000 metric tonnes of lithium carbonate equivalent (LCE) in lithium chloride form over six to twelve years. This move positions Galan to become a key supplier to US battery material processors.

Authium will provide a $6 million offtake prepayment, ensuring supply security for its lithium carbonate plant in the United States. Meanwhile, Galan’s HMW project will ramp up in phases to achieve a production capacity of 60,000t/yr of LCE, reinforcing Argentina’s role in global lithium supply chains.

Galan Targets LFP Battery Market with Lithium Chloride Strategy

Galan produces lithium chloride concentrate, aligning with rising demand from lithium converters. As lithium iron phosphate (LFP) battery technology gains adoption, chloride-based feedstock is increasingly favored for conversion flexibility and cost. Therefore, Galan's chloride strategy supports downstream decarbonization and expands optionality for global cathode manufacturers.

The Metalnomist Commentary

This agreement reflects the growing vertical integration between upstream brine producers and downstream processors in the US. Galan’s strategic shift toward chloride aligns well with LFP market trends, highlighting Argentina’s expanding role in lithium geopolitics.

Galan Lithium Secures Permit for Phase 2 Expansion at Hombre Muerto West Project

Hombre Muerto West

Galan Lithium has received a significant boost for its Hombre Muerto West (HMW) project in Catamarca, Argentina, with the granting of a Phase 2 mining permit by the Argentinian Ministry for Mining. This approval paves the way for a substantial increase in lithium production capacity at the brine project.

Production Expansion and Strategic Advantages

The Phase 2 permit allows Galan Lithium to ramp up nameplate capacity at HMW to 21,000 tonnes per year, a significant expansion from its Phase 1 production.  "We are delighted with the grant of the Phase 2 mining permit," said Juan Pablo Vargas de la Vega, Galan's managing director. "It will allow Galan to increase production over threefold from Phase 1 and produce a premium-quality lithium chloride product, which is in high demand. Importantly, HMW is positioned in the first quartile of the cost curve, and Phase 2 production would be cash-flow positive even at today's prevailing lithium carbonate prices."

The company currently holds an inventory of approximately 6,000 tonnes of lithium contained in existing lithium ponds at HMW and aims to commence Phase 2 ramp-up this year. This strategic timing positions Galan to capitalize on the anticipated recovery of lithium prices.

Future Growth and Resource Potential

Galan Lithium has ambitious plans for further expansion at HMW, with two additional phases in the pipeline. Phase 3 aims to achieve a production capacity of 40,000 tonnes per year within a two- to five-year timeframe, while Phase 4 has a longer-term target of 60,000 tonnes per year.  The project boasts substantial reserves of 7.3 million tonnes of lithium carbonate equivalent (LCE) at a high grade of 852 mg/L of lithium, representing the highest-grade and lowest-impurity lithium brine resource in Argentina.

Navigating Market Dynamics

This expansion comes at a time when lithium carbonate prices have experienced a significant correction, falling to $9.10-9.40/kg cif China on December 31st, down from $13-14/kg at the start of 2024.  Prices have plummeted by 86% since their 2022 peak, prompting several hard rock lithium producers in Africa and Australia to curtail production and conserve resources.  However, brine producers like Galan, with their larger scale and lower operating costs, are better positioned to weather the price downturn and benefit from sustained demand from lithium-iron-phosphate (LFP) battery manufacturers.

Galan Lithium funding secures 2026 start at Hombre Muerto West

Galan Lithium

Galan Lithium funding unlocks construction and commissioning at Argentina’s HMW brine project. Galan Lithium funding arrives in two A$10mn tranches from Clean Elements. As a result, Galan Lithium funding keeps first production on track for the first half of 2026.

Project timeline, RIGI support, and initial capacity

Galan secured A$20mn to complete 2025 construction and early-2026 commissioning. The investor will pay in September and November. Therefore, the HMW lithium chloride plant remains on schedule for an H1 2026 start. Argentina granted HMW access to the RIGI regime. The policy provides 30 years of tax and legal stability. This improves returns and reduces policy risk during ramp-up. Management targets initial production of 4,000 t/yr LCE. The plan then lifts output to 5,400 t/yr at full capacity.

Resource quality, process advantages, and strategic positioning

HMW sits in Catamarca with high-grade, low-impurity brine. Clean Elements highlights lower magnesium and calcium versus Chile’s Atacama. Lower impurities can cut reagent needs and operating costs. The project reports 7.86mn t LCE in total resources. That equals roughly 24.6mn t lithium chloride equivalent. The product slate begins with lithium chloride concentrate. Downstream conversion options remain open as markets evolve. Meanwhile, stable funding narrows execution risk and protects the schedule.

The Metalnomist Commentary

Funding that bridges the “last mile” often determines whether brine projects hit nameplate. HMW now has capital, regime stability, and a credible timetable. The next value drivers are brine chemistry in continuous operation, reagent efficiency, and offtake price realization.

Argentina RIGI lithium project approval: Galan’s HMW secures $217mn under incentives

Galan Lithium

Argentina RIGI lithium project approval moved forward as Galan Lithium won the green light for Hombre Muerto West. Phase one secures $217mn under the program’s incentives. The brine project sits in Catamarca, a core Argentine lithium basin. Argentina RIGI lithium project approval underscores policy support for battery materials growth.

What the approval covers

Galan plans 4,000 t/yr LCE, with potential to lift output to 5,400 t/yr. The final product will be lithium chloride concentrate for battery production. RIGI reduces the corporate tax rate to 25pc and waives trade duties. It also eases currency rules and guarantees 30 years of legal stability. Therefore, Argentina RIGI lithium project approval improves bankability for new brine investments.

Winners and exclusions under RIGI

Rio Tinto’s Rincon won approval in May, targeting 60,000 t/yr by decade’s end. Planned investments approach $2.7bn for that project. However, the ministry rejected Ganfeng’s Mariana application, as the mine was inaugurated last year. Beyond mining, RIGI has supported a solar project, an oil pipeline, FLNG and a steel mill.

Argentina produced 18,000t of lithium last year, ranking fourth globally. Reserves total 4mn t, and resources stand at 23mn t. As a result, Argentina RIGI lithium project approval complements a deep pipeline of salars. Investors should watch ramp timing, permitting steps, and downstream offtake execution.

The Metalnomist Commentary

RIGI’s incentives directly target project finance risks for brine developers. Galan’s phased plan is modest yet catalytic for Catamarca. Execution on product quality and logistics will determine commercial momentum.

EnergyX Targets Argentinian Lithium Assets of Galan Lithium Amid Industry Downturn

US energy technology firm EnergyX has set its sights on acquiring Australian developer Galan Lithium’s assets in Argentina, a strategic move aimed at boosting lithium production despite current market challenges.

EnergyX has proposed a deal valued at $150 million, which includes $50 million in cash and $50 million worth of EnergyX shares, to purchase Galan’s lithium assets located in Salar del Hombre Muerto and Candelas. Additionally, EnergyX plans to inject another $50 million into its wholly-owned subsidiary, which will manage the assets. This funding will be allocated to complete the first commercial phase of lithium production at the Hombre Muerto West (HMW) project. Under the proposed agreement, Galan will receive 10% of gross revenue royalties for ten years following the commencement of commercial production.

The acquisition comes at a crucial time as Galan Lithium recently delayed the first production at its HMW project to the second half of 2025, attributing the delay to the current downturn in lithium prices. The HMW project’s initial phase is expected to produce 5,400 tons per year of lithium carbonate equivalent (LCE), with a long-term goal of reaching 60,000 tons per year in its final phase. The Candelas project is expected to be integrated into this production timeline.

EnergyX plans to leverage its direct lithium extraction (DLE) technology, which is significantly more complex than traditional methods but promises higher efficiency. DLE can potentially increase lithium recovery rates to 70-90%, compared to the traditional methods' 40-60% recovery rate from hard rock mining and solar evaporation. This innovative approach could significantly enhance the value of the Argentinian assets beyond Galan's current projections, which rely on evaporation pond methodologies.

The lithium industry has seen increasing interest in DLE technology from various sectors, including oil and gas companies. Firms like CleanTech Lithium, Equinor, and ExxonMobil are already investing in lithium projects that employ DLE, reflecting a broader industry shift towards more efficient and sustainable extraction methods.

Galan Lithium Boosts LCE Resources with Candelas Project

Galan Lithium

Galan Lithium increased its estimated lithium resources by 10pc to 9.5mn t of lithium carbonate equivalent (LCE). This growth is primarily attributed to a significant resource expansion at its Candelas Project in Argentina.

Candelas Project Drives Resource Growth

The mineral resource estimate for the Candelas project rose over 150pc to 1.6mn t LCE. Meanwhile, the Hombre Muerto West (HMW) project's estimate remained at 7.9mn t LCE. Candelas, located near HMW, offers potential cost synergies and is integrated into Phase 4 of Galan's 60,000 t LCE/yr production plan. "Our resources are focused on finalizing the Phase 1 financing and offtake process followed by completion of the Phase 1 construction and operations at HMW," stated managing director Juan Pablo (JP) Vargas de la Vega. The company secured a permit for Phase 2 of its HMW project in January 2025.

Australia's IGO Reduces FY2023-24 Spodumene and Nickel Output

Australian mining group IGO has reported a decrease in lithium spodumene and nickel production for the financial year ending in June 2024. The company also announced that its Forrestania nickel project will transition to care and maintenance by the end of the year.

Spodumene production at IGO's Greenbushes site for FY2023-24 reached approximately 1.38 million tons, which is at the higher end of the company's forecasted range of 1.3-1.4 million tons. However, this output is down from the 1.49 million tons produced during the same period last year. Between April and June, spodumene production fell by 16% year-over-year but increased by 19% from the previous quarter to 332,000 tons, thanks to ramped-up processing activities. The production cash cost was A$338 per ton ($222 per ton), and the average realized price was $1,020 per ton FOB Australia.

Lithium hydroxide output for the fiscal year totaled 3,508 tons, up from 1,884 tons the previous year. IGO produced 28,376 tons of nickel and 9,922 tons of copper, with nickel production falling short of its 28,500-31,000 ton guidance, while copper production met the higher end of its 8,500-10,000 ton guidance. The company's Cosmos nickel project in Western Australia remains in care and maintenance, with the Forrestania project set to follow, highlighting difficulties in Australia's nickel sector.

For the upcoming fiscal year, IGO has projected lithium production at Greenbushes to be between 1.35 million and 1.55 million tons. At its Nova site, the company has set production targets for nickel at 16,000-18,000 tons, copper at 6,250-7,250 tons, and cobalt at 550-650 tons.

IGO's Managing Director and CEO, Ivan Vella, noted the ongoing volatility in the lithium market, driven by uncertain demand for electric vehicles (EVs). Despite these challenges, Vella pointed out the strong momentum and uptake in the Chinese EV market. He also warned that medium-term lithium supply might face more significant challenges than anticipated, citing recent project delays by companies such as Galan Lithium and Lake Resources.

China’s Predatory Steel Exports : A Threat to Latin America

The Latin American steel industry is grappling with a severe crisis precipitated by China’s predatory trade practices. The influx of cheap Chinese steel has flooded the market, imperiling local producers' livelihoods. Gabriela Fajardo Mejia, an expert in international relations at the University of Navarra, highlighted in her interview with Diálogo Américas that China’s steel overproduction endangers 1.4 million jobs across Latin America’s steel sector, compelling numerous companies to cease operations and lay off workers. Furthermore, Chinese steel production often bypasses established environmental and quality standards, with transparency regulations being routinely ignored.

Henry Ziemer, a researcher at the Center for Strategic and International Studies (CSIS), pointed out that China's slowdown in real estate and construction has diminished domestic steel demand. Consequently, Chinese producers are compensating for reduced domestic sales through aggressive export strategies. With the U.S. market becoming increasingly inhospitable for Chinese steelmakers, they are now targeting Latin American countries, which present fewer trade barriers, to dispose of their surplus inventory.

The Chinese government's subsidies for steel production and exports during the pandemic exacerbated the issue, leading to a global proliferation of low-cost Chinese steel. In retaliation, Mexico, Chile, and Brazil have significantly raised tariffs on Chinese steel imports to safeguard their domestic industries, and other nations are expected to follow suit. Alejandro Wagner, the former Secretary-General of the Latin American Steel Association (Alacero), indicated in a BBC interview that the influx of inexpensive Chinese steel has caused significant damage to Latin American steel industries, forcing several major companies to halt their operations.

In March, Chilean steelmaker CAP suspended operations at its Huachipato plant due to the unsustainable business environment created by dumped Chinese steel. Operations resumed only after the Chilean government imposed substantial tariffs on Chinese steel. Similarly, Fabio Galan, president of Colombian steelmaker Acerías Pazdelrio, remarked on the devastating economic impact of cheap Chinese steel imports and called for fair competition.

Reports also suggest that Mexico’s iron ore mines, previously plundered by organized crime cartels, were pivotal in transporting stolen ore to China, highlighting the detrimental effects of China’s opaque and unfair trade practices.

Brazilian steel producer Gerdau temporarily laid off workers at its São José dos Campos plant in response to the unfair competition from Chinese steel. CEO Gustavo Werneck emphasized that this action was merely the initial step in tackling the surge of cheap Chinese steel imports.

Fajardo Mejia underscored the subsidies Chinese steel companies receive, enabling them to lower costs without adhering to quality and environmental standards. She also noted the considerable environmental impact, revealing that Chinese steel production emits 45% more CO2 per ton than Latin American production.

As a countermeasure, imposing tariffs on Chinese steel could escalate trade tensions between Latin American countries and China, with potential retaliatory actions from China, known for its coercive diplomacy. Historical instances, such as China’s bans on Argentine soybean products and Canadian canola seeds, exemplify possible consequences.

CSIS researcher Ziemer highlighted that China, the world’s largest steel producer, generates more steel than the combined output of the next nine largest producers, influencing international prices and destabilizing Latin American economies through dumping practices. He proposed that the current scenario offers an opportunity for the U.S. to collaborate with Latin American countries to counteract China’s unfair trade practices and safeguard domestic industries.