How Galan Lithium’s RIGI Approval Transforms Hombre Muerto West Project

Strategic Approval Boosts Galan’s Flagship Project

Galan Lithium Limited has secured a significant endorsement from the Argentine government with the approval of its Hombre Muerto West (HMW) lithium project under the Régimen de Incentivo para Grandes Inversiones (RIGI). This incentive regime is designed to attract large-scale investments by offering long-term fiscal certainty and streamlined regulatory processes. For Galan, this approval marks a pivotal step in cementing HMW’s position as a globally competitive lithium brine operation.

Fiscal and Operational Advantages

The RIGI framework delivers a suite of benefits critical to the project's financing and execution. Notably, it reduces the corporate income tax rate by 10% to 25%, guarantees fiscal stability on taxes, royalties, and export duties for three decades, and grants preferential access to foreign currency markets. Additionally, customs and tariff exemptions will ease the import of essential equipment, while accelerated depreciation provisions improve cash flow during development phases.

Phased Production and Market Positioning

HMW is planned as a multi-decade lithium brine project with an initial Phase 1 production target of 4,000 tonnes per annum of lithium carbonate equivalent (LCE), expected to commence in the first half of 2026. Galan has secured offtake agreements for 45,000 tonnes of LCE, underpinning demand for its product. The company’s phased scaling approach aims to ramp production up to 60,000 tonnes per annum by Phase 4, balancing growth with risk mitigation and continuous process improvements.

Alignment with Argentina’s Economic Vision

Galan’s Managing Director, Juan Pablo Vargas de la Vega, highlighted the strategic importance of the RIGI approval, noting it aligns closely with Argentina’s broader economic reforms and ambitions to accelerate lithium production. The project’s fiscal stability and operational certainty are expected to unlock long-term value for both local communities in Catamarca Province and shareholders alike.

Competitive Edge in the Lithium Triangle

Situated in the renowned Hombre Muerto Salar within Argentina’s lithium triangle, HMW benefits from high-grade lithium brine resources with low impurities. This positions Galan favorably against hard rock lithium projects, offering lower capital intensity and risk. The lithium chloride produced is particularly suited for lithium iron phosphate (LFP) batteries, which dominate the global battery market, further enhancing the project’s market relevance.