Why is the Galan Lithium share price rocketing 23% today?

Rocket powering up and symbolising a rising share price.Rocket powering up and symbolising a rising share price.

The Galan Lithium Ltd (ASX: GLN) share price is storming higher today.

Galan Lithium shares soared 23% to $1.27 from yesterday’s close of $1.03 in early afternoon trade. The lithium explorer’s shares have since pulled back, but are still up 19%. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is sliding 0.44% today.

Let’s take a look at why this ASX lithium share is having such a top run.

What’s going on?

Galan Lithium shares are rising more than multiple ASX lithium shares today, but it is not the only lithium explorer in the green.

ASX lithium shares rising include:

  • Pilbara Minerals Ltd (ASX: PLS), jumping 5%
  • Allkem Ltd (ASX: AKE), gaining 9%
  • Lake Resources N.L. (ASX: LKE), soaring 14%
  • Sayona Mining Ltd (ASX: SYA), lifting 7.5%

Galan shares could be rising today amid major news from another ASX lithium player with projects in Argentina.

Galan Lithium owns two lithium brine projects in Argentina, which happen to be near the lithium operations of Livent Corp (NYSE: LTHM) and Allkem.

Allkem and Livent today announced they would merge to create a new US$10.6 billion mega lithium company.

If the deal receives regulatory and shareholder approval, Allkem shareholders would own 56% of the company while Livent would hold a 44% stake.

The new company would list on the New York Stock Exchange and maintain a foreign exempt listing on the ASX.

What’s been going on at Galan Lithium?

Galan 100% owns the Hombre Muerto West (HMW) and Candelas projects in Argentina, within the South American triangle.

Commenting on this lithium region on the company website, Galan states:

It is home to the established El Fenix lithium operations (Livent Corporation) and Sal de Vida (Allkem) and Sal de Oro (POSCO) lithium projects.

Recently, Galan Lithium announced the total resource at its HMW project has lifted to 6.6 million tonnes of lithium carbonate equivalent at 880mg/l Li.

Galan noted this is the third major resource upgrade since March 2020. Managing director Juan Pablo (JP) Vargas de la Vega said:

This latest increase in the high grade, low impurity HMW Resource highlights the potential enormity of
the brine resource that sits within Galan’s 100% owned tenements in Argentina. We have continued to
acquire tenements and continued to drill holes since our maiden resource was announced at HMW

Galan Lithium also owns the Greenbushes South lithium project in Western Australia.

Galan Lithium share price snapshot

The Galan Lithium share price has lost nearly 19% in the past 52 weeks.

This ASX lithium share has a market cap of about $375.97 million based on the last closing price.

The post Why is the Galan Lithium share price rocketing 23% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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