Galan’s Hombre Muerto West Edges Closer to First Lithium Chloride

Galan Lithium (ASX: GLN) has ticked off another tangible milestone at its flagship Hombre Muerto West project in Argentina, with the arrival of the nanofiltration plant marking a decisive step towards first production in 2026.

For a company that has spent the past two years building brine inventory and patiently assembling infrastructure in the high-altitude Catamarca province, this is not just another delivery truck rolling in. It is the beginning of the final stretch.

The 16 February update confirms Phase 1 construction is now about 85 per cent complete, with first processed brine targeted for early Q2 2026 and first lithium chloride concentrate in the first half of the year .

Nanofiltration Plant - From Concept to Concrete

The nanofiltration plant has successfully arrived at site and on-site assembly is already under way, with Galan’s team working alongside specialists from Authium Limited . Installation and assembly are expected to take several weeks, after which commissioning will begin.

Managing director Juan Pablo Vargas de la Vega, speaking from site, did not hide his enthusiasm.

“Our HMW site team is very excited at the arrival of the nanofiltration plant. Over the past 2 years we have accumulated a lithium brine inventory of around 9,500 tonnes (LCE) in the HMW ponds. In the short term we plan to complete the nanofiltration plant assembly and commissioning, which will allow for the first processed lithium brine to be produced from HMW,” he said .

The plant is central to Galan’s Phase 1 flowsheet, designed to treat brine efficiently before it heads to evaporation ponds. It has been designed, tested, constructed and transported on what the company describes as an accelerated schedule. In an environment where lithium developers globally have struggled with commissioning blowouts and technology missteps, execution here will be closely watched.

Ponds Ready, Inventory Waiting

Importantly, the sylvinite evaporation ponds required for Phase 1 operations have now been completed . These ponds are engineered to accelerate evaporation of processed brine, enabling quicker production of lithium chloride concentrate and, ultimately, product sales.

That matters because Galan is not starting from scratch. It has built up a substantial brine inventory over the past two years, providing optionality once commissioning is complete. In a lithium price environment that has been volatile, having inventory in the system before first processing is a strategic advantage.

Following its January 2026 capital raising, Galan also plans to continue expanding the evaporation pond network after the nanofiltration plant is commissioned, supporting an expanded Phase 1 production rate of 5,200 tonnes per annum of LCE .

The March Toward First Production

With construction 85 per cent complete, the key milestones from here are well defined: completion of nanofiltration assembly, commissioning and testing of brine processing systems, first processed brine in early 2026 and first lithium chloride concentrate in the first half of 2026 .

For investors, the shift from construction metrics to commissioning metrics is critical. Capital intensity gives way to operating reliability. The market tends to re-rate lithium developers once first product is achieved and sold, assuming ramp-up proceeds without major hiccups.

Hombre Muerto West is not a small resource hoping to punch above its weight. The January 2025 mineral resource statement outlines a total inventory across HMW and Candelas of 9.5 million tonnes LCE, including 7.87 million tonnes LCE at HMW alone . HMW’s average lithium grade of 883 mg/L and relatively low impurity profile have long been central to Galan’s investment thesis.

The company has previously highlighted its ambition to expand beyond Phase 1, with construction permits in place to grow HMW to 21,000 tonnes per annum LCE and potential longer-term expansion up to 60,000 tonnes per annum across later phases . But those aspirations hinge on delivering Phase 1 smoothly.

Argentina Tailwinds and Execution Risk

Galan also reiterates its position as a beneficiary of Argentina’s RIGI large-scale investment framework, which provides income tax benefits and 30 years of fiscal stability . In a jurisdiction often viewed through a risk lens, fiscal stability is not a trivial detail.

Still, as the forward-looking statements section makes clear, commissioning risk remains real . Lithium extraction from brine, even using established technologies such as evaporation and nanofiltration, can present operational challenges during ramp-up.

The next few months will therefore be pivotal. The heavy lifting of civil works and pond construction is largely done. What remains is to prove the process works at scale and consistently delivers lithium chloride concentrate to specification.

For now, Galan has moved from promise to visible plant. In lithium development, that is a meaningful transition. Investors will be watching closely as Hombre Muerto West shifts from construction site to producing asset in 2026.