Australia-listed Galan Lithium has secured an offtake agreement with international trading firm Glencore for up to 100pc of the technical grade lithium chloride concentrate from its Hombre Muerto West (HMW) project in Argentina.
The binding agreement is for five years from the start of production of the lithium brine project, which is targeted by the end of June 2025. Glencore will accept offtake for Galan's lithium chloride for third-party processing into lithium carbonate for sale and export from Argentina. The agreement covers 100pc of Galan's phase 1 production of approximately 5,400 t/yr lithium carbonate equivalent.
HMW's development will be carried out in two phases, the first of which will focus on the production of lithium chloride concentrate. Phase 2 will target 20,000 t/yr of lithium chloride concentrate from 2026.
Galan also secured funding from Glencore through a $70mn-100mn financing prepayment facility that "significantly de-risks our projects and we are very well poised to secure finance for phase 1 of the HMW project", said Galan's managing director Juan Pablo.
