Argentine lithium producer Galan Lithium has signed a non-binding agreement for supply of 23,000 t/yr of lithium carbonate equivalent (LCE) with Chinese refiner Chendu Chemphys.
The material will come from Galan's Hombre Muerto West (HMW) project in northern Catamarca, Argentina.
The shipments to China over a five-year period will be part of Galan's phase 1 production at HMW, and Chemphys will also provide Galan with $40mn to continue the project's development.
"The high grade, low impurity lithium chloride samples Galan has been producing from the HMW pilot plant have been very well received by lithium converts, leading to this agreement with Chemphys," Galan managing director JP Vargas de la Vega said.
Galan secured export permits in April for sale of its lithium chloride concentrate at HMW, and plans for phase 1 production of 5,400 t/yr by the first half of next year.
The firm in November secured an offtake agreement with Swiss-based trading firm Glencore for up to 100pc of its lithium chloride concentrate in exchange for $70mn-100mn of project financing.
Galan said this week "it has not received both an offtake and financing proposal" from the firm and "could no longer proceed with that option".
China accounted for around 15pc of lithium mining in 2022 but 74pc of lithium carbonate production last year, according to the US Geological Survey, along with control over a series of other battery materials (see graph).
