ASX-listed lithium exploration company Galan Lithium has started full phase one pond construction at its flagship Hombre Muerto West (HMW) lithium brine project in the province of Catamarca in Argentina.

The company will begin lithium chloride production at the project in the first half of 2025, as the first batch of earthmoving equipment for the ponds’ construction has already started working on the project site.

Further equipment is expected to arrive in the last week of this month. Other construction activities to upgrade essential services, including camp, diesel storage and water supply, have also started.

The first milestone of the pond construction, which includes building, lining and filling with brine of the first pond, is expected to take place in the first quarter of next year. The pond uses an evaporation technique with an area of 205,000m².

Galan Lithium managing director Juan Pablo Vargas de la Vega said: “This is the beginning of our construction journey to production. I would like to congratulate the global Galan team for their continued support to make this happen. This is also testimony to our desire to work locally with the community and contractors whilst receiving full support from the provincial government of Catamarca, Argentina.

“We have come a long way since our early days, considering Galan only obtained the original Hombre Muerto assets just over five years ago and with all the delays experienced during Covid-19. This feels more real than ever for everyone at Galan. We will continue to give our best-focused efforts to become a new lithium producer by H1 2025.”

Phase one of the HMW definitive feasibility study (DFS) explores lithium chloride concentrate production, as governed by the production permits.

Optimisation work is over and will contribute to phase two of the DFS release next month.

The HMW project has exploration permits that span 11,600ha. It is expected to produce up to 20 kilotonnes per annum (ktpa) of lithium chloride during its more than 40 years of life.