Australia’s Galan Lithium has entered a five-year offtake agreement with Glencore for its production from the Hombre Muerto West (HMW) project in Argentina. Glencore offers Galan a financing prepayment facility of $70 million to $100 million to support and secure 100% of Phase 1 production estimated at 5.4 kt lithium carbonate equivalent (LCE) in lithium chloride concentrate per annum. The payable price will be referenced to a mutually agreed lithium carbonate price index, less a marketing fee, discount, and any penalties.
Glencore makes a strategic move to capitalize on the growing demand for lithium, align with the global trend towards renewable energy, and diversify its commodity portfolio. For Galan, the agreement generates credibility and visibility, opening doors for future expansions.
