Galan Lithium has partnered with leading sustainable supply chain traceability provider, London-headquartered international group Circulor Ltd as the ASX-listed lithium development hopeful seeks to become a preferred supplier of lithium carbonate to global markets.
Galan says Circulor will help it meet compliance requirements under the European Union’s battery regulations, supply chain due diligence laws and the proposed carbon border adjustment mechanism when extended to lithium by providing a system to analyse, track and manage its supply chains to support responsible sourcing and improve sustainability.
The collaborative partnership will look to establish full lithium traceability and dynamic carbon dioxide and environmental, social and governance or “ESG” tracking for Galan’s lithium brine assets in Argentina’s “lithium triangle”.
Galan says Circulor’s software platform will enable the Perth-based company to demonstrate the sustainability of its future lithium carbonate products via ethical sourcing, carbon dioxide transparency and other ESG performance metrics such as water consumption.
Circulor’s solution will be adopted during Galan’s proposed feasibility study stage for its Hombre Muerto West lithium brine project by tracking samples from a pilot lithium carbonate plant to marketable product, the company says.
Galan Lithium Managing Director Juan Pablo Vargas de la Vega said: “We are excited about being able to underpin the ESG performance of our assets, our products and our supply chains. Making this visible and easily traceable for our markets distinguishes our products and will help future customers make their complex supply chains more transparent. It also reinforces our commitment to sustainability for our markets and other stakeholders.”
Companies using Circulor can gain visibility into their supply chains and in so doing point to responsible sourcing, improve their ESG performance, reduce greenhouse gas emissions and manage supply chain risks, according to the company.
Circulor’s software platform creates a chain of custody of materials and attaches sustainability and other ESG data to that flow of materials.
In Galan’s case, Circulor’s ESG metrics will allow Galan to track carbon dioxide intensity, water usage and energy mix.
Circulor Director of Business Development Yue Jin Tay said: “As businesses advance initiatives to decarbonise their supply chains and improve ESG performance, supply chain traceability and transparency becomes even more relevant and important. It enables them to make more informed decisions in support of these objectives and provide customers with insights into the environmental and social impacts of these decisions.”
Galan recently wrapped up a well supported $50 million capital raise.
Among other things proceeds will be funnelled into accelerating drilling work at its key Hombre Muerto West project in order to establish well fields for production and convert existing resources to reserves, the $311 million market-capped company says.
Hombre Muerto West is located within South America’s world-renowned lithium triangle on the Hombre Muerto salar basin or salt pan in Argentina.
About 40 per cent of the world’s annual production of lithium comes from brines in the Atacama salar in neighbouring Chile and Hombre Muerto, both in the prolific South American lithium triangle.
Galan’s project lies in the Argentinean Puna plateau of the Andes mountains at an elevation of about 4,000 metres above sea level.
Major lithium players Galaxy Resources, which merged with Orocobre, POSCO and long-time producer Livent Corp have projects in close vicinity.
Hombre Muerto West hosts an indicated resource of about 2.26 million tonnes of lithium carbonate-equivalent from lithium-bearing brine material grading 946 mg/L lithium.
Galan aims to finalise a planned definitive feasibility study on Hombre Muerto West incorporating the pilot plant in about a year’s time.
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