According to Yahoo Finance, Galan Lithium has obtained the Phase 2 mining permit for its Hombre Muerto West (HMW) lithium brine project in Catamarca, Argentina, enabling the company to boost production capacity to 21,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE). This expansion, subject to project financing and Phase 1 production launch, will increase production more than threefold from the initial target of 5,400 tpa LCE. Phase 1 is set to commence in the second half of 2025, with Phase 2 following in 2026.
The Phase 2 permit strengthens Galan’s application for Argentina’s Régimen de Incentivo para Grandes Inversiones (RIGI), a new incentive program for large-scale investments. If approved, Galan could benefit from significant fiscal advantages, including a reduced corporate income tax rate of 25% (down from 35%).
The HMW project is divided into four phases:
Phase 1, supported by a definitive feasibility study, targets 5,400 tpa LCE of lithium chloride concentrate.
Phase 2, aims for a medium-term output of 21,000 tpa LCE by 2026.
Phase 3, expected to reach 40,000 tpa LCE by 2028 and expand to 60,000 tpa LCE by 2030.
Phase 4, will integrate lithium brine resources from both HMW and Galan’s nearby Candelas project.
In addition to scaling production, Galan signed a commercial agreement with the Catamarca Government in April 2024 to facilitate the commercialisation of lithium chloride concentrate from HMW. With the Phase 2 permit secured, Galan is set to deliver a premium lithium product while leveraging Argentina’s investment-friendly policies, ensuring its place as a leader in the lithium mining industry.
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