Galan Lithium has announced a transformation partnership with United States lithium expert Authium to secure a binding funding and offtake package that will propel the company’s flagship Hombre Muerto West (HMW) lithium brine project toward first production.
The deal includes a fully funded and operated plant to be supplied by Authium, eliminating a substantial US$41.5 million (A$65.5M) in capital expenditure for Galan.
Additionally, Authium is expected to slash operating costs by 18 per cent on its previous feasibility study projections, cementing Galan’s position as a low-cost lithium producer for its phase one production.
The agreements include a lithium chloride concentrate offtake deal and an operating agreement for advanced nano-filtration processing technology at HMW. Authium says it will purchase 45,000 tonnes of lithium carbonate equivalent (LCE) over six to 12 years, providing an additional US$6M in prepayments to support Galan’s construction timeline. First production is slated for the first half of next year.
The partnership comes after Galan rigorously reviewed its funding options, including a previously announced memorandum of understanding with China’s Chengdu Chemphys.
Galan says its newly inked deal offers superior financial, technical and timing advantages over Chengdu’s offer, positioning HMW as a high-margin lithium producer in Argentina’s prolific Lithium Triangle.
To bolster the project’s financing, Galan has raised A$13M through a placement of about 120 million shares at $0.11, with commitments from institutional and sophisticated investors, including Authium’s founder Cameron Stanton, who will increase his stake in the company to 2 per cent.
The company is also offering existing shareholders an opportunity to participate in a share raising of up to $4M through a purchase plan set at the same price.
Galan Lithium managing director Juan Pablo Vargas de la Vega said: “We are extremely pleased to have secured this HMW production funding via the Authium agreements and the placement. This funding package will see Galan move into initial production with greater efficiency while keeping our timeframe for first concentrate production within the first half of 2026.”
Galan’s HMW and Candelas projects have a recently updated world-class 9.5-million-tonne LCE resource grading at 841 milligrams per litre (mg/L) in Argentina’s prolific Lithium Triangle.
The new partnership with Australian-founded Authium is set to leverage the company’s nano-filtration processing technology, which was proved up previously at projects such as Rio Tinto’s Rincon mine, 100 kilometres north.
Galan says the process will lower HMW’s costs and enhance the quality of its 6 per cent lithium chloride concentrate, which will align the project with rising demand for high-grade, low-impurity feedstock for lithium iron phosphate batteries.
Galan’s HMW first phase remains on track for completion in the second half of 2025, targeting 5400t per annum of LCE. The company is managing an estimated 9000t LCE in brine inventories, which it says will soon be processed at Authium’s plant.
The 18 per cent operating cost reduction, combined with the definitive feasibility study prior estimate of US$3500/t LCE production costs, reinforces HMW’s position in the first quartile of the industry’s cost curve - a critical advantage amid subdued lithium prices.
The offtake agreement includes market-linked pricing tied to battery-grade lithium carbonate (≥99.5 per cent purity), with a right of first refusal for extension.
With construction advancing, financing secured and costs significantly reduced, Galan says it is ready to transition from developer to producer. The Authium partnership de-risks HMW’s first phase and positions Galan as a potentially profitable lithium producer in a depressed lithium market, which history tells us could turn around drastically at any moment.
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