Galan Lithium will supply major miner Glencore with technical grade lithium chloride product from Galan’s HMW project in Argentina.
The product will be treated into lithium carbonate for sale and export from Argentina.
Glencore has also offered to either provide or facilitate a financing prepayment facility for US$70–100 million.
“We are very delighted to announce Galan’s achievement of this very significant milestone on the path towards commencing commercial production at HMW in 2025,” Galan managing director Juan Pablo Vargas de la Vega said.
“We are today closer to becoming a significant and reliable producer of lithium, and thereafter growing our production in line with the expected rise in demand. Our momentum towards maiden commercial production continually strengthens and we look forward to updating investors on our progress.”
The agreement will span a five year period from commencement of commercial production for 100 per cent of Galan’s phase one production, estimated at 5.4 thousand tonnes of lithium carbonate.
de la Vega said the agreement is a validation of the quality of Galan’s project.
“Our agreement with Glencore significantly de-risks our project and we are very well poised to secure finance for phase one of the HMW project,” he said.
“Importantly, Glencore’s funding assistance via the prepayment facility endorses our lithium chloride concentration strategy to deliver the HMW project, and provide returns to shareholders, in a shorter time frame.”