- Phase 1 construction at Hombre Muerto West (HMW) on track for first production in H1 2026, well timed to benefit from lithium market recovery
Strategic expansion of Greenbushes South’s mandate
Early completion of the second tranche of the Clean Elements, resulting in a strong financial position with cash on hand of $15 million (as of December 31, 2025), no debt and a US$6 million undrawn prepayment facility
PERTH, AU / ACCESS Newsline / January 19, 2026 / Galan Lithium Limited ( Galan or the Company ) presents its quarterly activity report for the quarter ended December 31, 2025, together with activity through the date of this press release.
During the quarter, Galan continued to focus on the construction of Phase 1 of its 100% owned HMW lithium brine project in Argentina. Galan has achieved a series of material improvements at HMW that firmly position the company for the transition from developer to manufacturer in the first half of 2026.
In addition, Galan strategically expanded its footprint in the promising Greenbushes region of Western Australia, providing an opportunity to test geological continuity between the Greenbushes mine and Galan’s tenure at Greenbushes South, 2 kilometers away.
Figure 1. HMW location looking north
Commenting on the progress made this quarter, Managing Director Juan Pablo (“JP”) Vargas de la Vega said:
“ This was a strong quarter for Galan, marked by significant progress in construction activities at Hombre Muerto West. With construction financing for Phase 1 secured and workflows well advanced, we remain firmly on track for first production in the first half of 2026. Importantly, we continue to assess the opportunity to expand Phase 1 capacity from 4,000 tonnes per annum LCE to capacity above 5,000 tonnes per annum LCE by leveraging existing infrastructure and improving project scale.
2026 will be a transformational year for Galan and its shareholders as we move toward production and cash flow at a time of greatly improved sentiment and market conditions for the lithium sector.”
Project Execution – Hombre Muerto West
Phase 1 execution at HMW made significant progress during the quarter, with construction progressing on schedule towards first production in the first half of 2026.
The Phase 1 nanofiltration plant was assembled and tested in Sydney, confirming performance in accordance with design parameters. After testing, the plant was containerized and shipped to site. Delivery is expected in early 2026 and commissioning will follow.
Figure 2. Unloading of nanofiltration installation
Significant progress was made on site in evaporation ponds and plant infrastructure. Ponds 4 and 5 were redesigned and constructed to support the LCE Phase 1 production rate of 4,000 tons per year. The earthwork for the process installation has been completed and the concrete foundation slab has been poured. The engineering and purchasing activities continued to focus on the integration of the nanofiltration facility with the pond system. The majority of items with a long delivery time are now on location or in transit.
Figure 3. Completed earthworks and concrete foundations at the HMW plant site
The company maintained a strong safety and environmental record this quarter, with no lost time injuries and continued compliance with regulatory approvals and community engagement obligations.
Overall, the implementation of Phase 1 at HMW continues to progress as planned, supported by strong coordination between Galan, its contractors and strategic partners.
Figure 4: Location of Galan’s 100% owned HMW and Candelas projects in Argentina
Greenbushes South (WA)
Expansion of strategic terms of office
In October 2025, Galan was granted exploration permit E70/4889 and prospecting permits P70/1702, P70/1703 and P70/1704 from the Western Australian Department of Mines, Industry Regulation and Safety. The new jurisdictional area is located approximately two kilometers south of and along the strike of the Tier 1 Greenbushes lithium mine.
Figure 5. Drone photo of new tenements in relation to the Greenbushes mine
Importantly, the licenses relate to the interpreted continuation of the primary mineralizing structure associated with Greenbushes, including the Donnybrook-Bridgetown Shear Zone. This significantly increases Galan’s strategic land holdings in one of the world’s most promising lithium districts and increases exposure to the structural corridor believed to control pegmatite emplacement.
The licenses provide the opportunity to test geological continuity between the Greenbushes system and Galan’s existing property rights. Planning for the explorations is underway, building on previous airborne geophysical surveys. Initial work is expected to commence in the second half of fiscal year 2026, subject to permits and conditions. Further details will be provided once the programs and budgets are finalised.
Early completion of installation of clean elements
In November 2025, Galan announced that it had received the second and final A$10 million tranche of the A$20 million placement from the Clean Elements Fund. The accelerated completion of the installation reflected Clean Elements’ confidence in HMW and provided the final capital needed to finance the construction of Phase 1.
The completion of the placement followed a significant period of due diligence by the Clean Elements Fund, further confirming HMW’s world-class status.
Financial position
Cash outflows during the quarter went mainly to construction activities at HMW (evaporation ponds, nanofiltration plant fabrication, on-site work) and operating overheads. Net cash used for investing activities reflected capital expenditures on plant equipment and infrastructure. Related party payments during the quarter totaled approximately $0.32 million for director and advisory fees.
The Galan board has approved the publication of this December 2025 quarterly activity report 2025.
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About Galan
Galan Lithium Limited (ASX:GLN,OTC:GLNLF) is an ASX-listed lithium exploration and development company. Galan’s key assets include two world-class lithium brine projects, HMW and Candelas, located at the Hombre Muerto Salar in Argentina, within South America’s ‘lithium triangle’. Galan distinguishes itself by:
The size of the mineral resource. HMW is ranked among the top 10 lithium production or development projects worldwide. 1
The purity of its mineral resource. The HMW mineral resource has the lowest impurity profile of all published lithium brine resources in Argentina.
Positioning on the cost curve. When HMW is in production it is in the first quartile of the industrial cost curve, 2
Short-term production with permitted expansion. Galan is on track for first production of lithium chloride in 2026 and has construction permits to expand the HMW to 21 ktpa LCE.
The RIGI. The RIGI is a large-scale investment framework in Argentina that offers income tax benefits, 30 years of fiscal stability and a range of other financial benefits. Galan and Rio Tinto are the only recipients of the RIGI within Argentina’s lithium industry
Exploration licenses at Greenbushes South in Western Australia, close to and just south of the Tier 1 Greenbushes Lithium mine.
1 S&P Global Metals & Mining.
2 Wood Mackenzie, iLi Markets
SOURCE: Galan Lithium Limited
View the original press release on ACCESS Newswire
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