Galan Secures Partner to Fast-Track Lithium Production, Slashes CapEx

Published: April 16, 2025
at 11:40 am

In a breakthrough move that could propel Galan Lithium (ASX GLN) into the ranks of near-term lithium producers, the company has inked a binding partnership with U.S.-based Authium Limited, locking in offtake, funding, and operational support for its flagship Hombre Muerto West (HMW) lithium brine project in Argentina.

The deal clears a key hurdle for Galan as it prepares for first production in the first half of 2026, while also offering ASX investors fresh exposure to a uniquely de-risked lithium development path—one that cuts capital costs, speeds up cash flows, and links the company directly to U.S. battery supply chains.

U.S. Capital, U.S. Offtake

At the heart of the agreement, Galan will supply 45,000 tonnes of lithium carbonate equivalent (LCE) over a 6–12 year term to Authium’s upcoming lithium carbonate facility in the United States. In return, Authium will provide an initial US$6 million in prepayment funding—and, perhaps more critically, will fund, supply, and operate Galan’s on-site lithium processing infrastructure.

That last point is a game-changer. By outsourcing the build and operation of the nano-filtration processing plant at HMW, Galan eliminates approximately A$41.5 million in planned capital expenditure and expects to cut operational costs by 18% versus its Phase 1 Definitive Feasibility Study.

“We are extremely pleased to have secured this HMW production funding,” said Managing Director Juan Pablo (JP) Vargas de la Vega. “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.”

Strategic U-Turn from China to the U.S.

The Authium agreement marks a strategic pivot away from Galan’s previously flagged offtake MOU with China’s Chengdu Chemphys. While never finalized, that deal now appears shelved in favour of a U.S.-aligned partner, a move consistent with current trade sentiment.

To complement the funding from Authium, Galan has raised A$13 million via a placement to institutional and sophisticated investors at $0.11 per share—an 8.3% discount to last close. Galan will also launch a Share Purchase Plan (SPP) to raise up to A$4 million more from existing retail shareholders at the same price.

Notably, Authium’s founder, Cameron Stanton, has personally increased his stake in Galan to 2% post-placement, signalling alignment and confidence in the project. Stanton was instrumental in the development of the Rincon lithium brine project, later sold to Rio Tinto for US$825 million in 2022.

“”I am excited to return to Argentina and assist JP and his team in developing HMW,” said Stanton. “This project will be less challenging compared to other lithium brine projects I have been involved with in the region, as we believe GLN undoubtedly possesses the best lithium brine in Argentina, characterised by high grades and low impurity concentrations.”

Nano-Filtration: Lower Cost, Higher Purity

The technology being deployed at HMW is no science experiment. Authium’s nano-filtration skid units are a proven method for separating impurities such as magnesium and calcium from lithium-rich brines. Already deployed at projects like Rio Tinto’s Rincon, the same tech has been successfully tested on brine from HMW.

Galan expects this processing method to enable it to hit a target lithium chloride concentrate grade of 6%, reducing the need for costly liming plants and boosting overall recovery.

Bottom Line

For investors hunting value in the ASX lithium space, Galan Lithium now offers a rare mix of tier-1 resource, near-term production, and dramatically reduced capex. Add in U.S. downstream exposure and a seasoned technical partner, and Galan just might have repositioned itself from explorer to future cash-flow generator—without overextending its balance sheet. First Production is slated for H1 2026.