[SMM News] Galan Lithium Successfully Completes Wet Plant Commissioning at HMW, Moves into Production Optimisation Phase

Published: May 31, 2026 18:15

On 28 May 2026, Australian listed lithium company Galan Lithium Limited (ASX:GLN) announced the successful completion of wet plant commissioning at its wholly‑owned Hombre Muerto West (HMW) lithium brine project in Catamarca Province, Argentina. The first batch of processed lithium chloride (LiCl) has been injected into the final evaporation ponds, marking the official start of the production optimisation phase. The company expects to achieve production and sales of concentrated lithium chloride in the second half of 2026.

Core Progress: Commissioning Completed, Mass Production Imminent

The first phase of the HMW project was completed in March 2026. After mechanical and electrical commissioning, the wet plant successfully entered the commissioning phase. During the process, the nano‑filtration plant first treated raw brine at low pressure, then treated pre‑concentrated brine with approximately 0.5% lithium at high pressure. Independent laboratory tests confirmed that impurity separation met all design specifications. The processed lithium chloride has now been transferred to evaporation ponds, where it will be concentrated over about three months to produce a 6% lithium chloride concentrate, which will be sold under existing offtake agreements.

The project is currently in the production optimisation and ramp‑up phase, and stable mass production has not yet been achieved. Once optimisation is complete, the project will steadily reach its Phase 1 design capacity of 4,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE). The evaporation ponds already hold a brine inventory equivalent to approximately 10,000 tonnes of LCE, providing ample raw material to support the ramp‑up and ensure continuous production.

Capacity Expansion: Phase 1 Expansion + Four‑Stage Plan Targeting 60,000 tpa LCE

Galan is steadily advancing its capacity expansion, with a clear long‑term growth roadmap. Phase 1 is planned to increase from 4,000 tpa LCE to 5,200 tpa LCE, with evaporation pond construction to begin shortly and completion expected in the first half of 2027. The nano‑filtration plant is designed flexibly to support the expanded capacity. Looking further ahead, the company already holds a construction permit for Phase 2 (21,000 tpa LCE) and plans a four‑stage expansion, with a final target of 60,000 tpa LCE. The HMW project’s resource base ranks among the top ten lithium projects globally, providing a solid foundation for long‑term stable production and supply.

Project Advantages: Premium Asset with Low Costs and Policy Support

As Galan’s flagship project, HMW offers multiple core competitive strengths. First, it features industry‑leading brine purity — among the lowest impurity levels of any published lithium brine resource in Argentina. Second, it enjoys a significant cost advantage, positioning it in the first quartile of the industry cost curve once in production. Third, the project has been awarded RIGI preferential status, providing 30 years of fiscal stability and income tax benefits. Finally, it is located in the renowned “lithium triangle” of South America, within the Hombre Muerto salar, giving it exceptional resource endowment.

Near‑Term Goals: Four Key Priorities

As it enters the production phase, Galan is focusing on four key tasks: 1) ramping up to Phase 1’s design capacity of 4,000 tpa LCE; 2) shipping the first batch of lithium chloride concentrate to Authium Limited; 3) commencing construction of evaporation ponds for the Phase 1 expansion to 5,200 tpa LCE; and 4) continuing planning and financing for the Phase 2 project. With these goals being steadily achieved, Galan is well positioned to take an increasingly important role in the global lithium supply landscape.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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