Gln included in St0ckhed article today... JP Vargas’ Crystal...

Gln included in St0ckhed article today...

JP Vargas’ Crystal Ball

Driving forward Galan Lithium’s (ASX:GLN) push into Argentina brine is managing director Juan Pablo Vargas de la Vega, who says the narrative of opex is back in the lithium sector, a conversation that was being had pre-COVID.

“Galan is part of this low-opex solution which is shown in our last two definitive feasibility studies (DFS) for our Hombre Muerto West (HMW) brines project,” JP Vargas says.

“Lithium brines have a competitive advantage for being a long-term, low-cost option of supply for OEMs.

“Grade is king and Galan has it – that’s why we continue to build Phase 1 of HMW despite a marked nose dive in the lithium price.

“To put it bluntly, if lithium brine does not get into production because of lithium prices, then there is simply no lithium supply – that means no batteries for EVs, of which sales continue to grow strongly.”

Then there’s GLN’s HMW project, which is astutely separated into four production phases to stagger capex, with the initial Phase 1 DFS focused on the production of 5.4ktpa LCE by H1 2025.

The Phase 2 DFS targets 21ktpa LCE in 2026, which will be followed by Phase 3 production of 40ktpa LCE by 2028 and a final Phase 4 production target of 60ktpa LCE by 2030 that will include lithium brine sourced from both HMW and the Candelas deposit.

JP Vargas says HMW’s Phase 1 construction is tracking along as planned.

“Galan’s experienced and competent construction team are entirely focused on delivering the first HMW production phase in H1 2025 and remain enthusiastic and confident in doing so,” JP Vargas says.

GLN made big news recently after it inked a $100m prepayment finance deal with global mining major Glencore for the latter to purchase up to 100% of the proposed lithium chloride concentrate production of Phase 1 and secure first rights to negotiate financing for future Phase 2 expansion operations.

Glencore is currently undertaking due diligence of HMW before a final investment decision is made.