Oil production by country

Read on for a look at the 10 top oil producing countries, including the US, Saudi Arabia, Russia and Canada. The top 10 countries combined for 74.59 million bpd out of the total global output of 101.81 bpd in 2023.

Statistics are from the Energy Information Administration (EIA) and include total production of petroleum and other liquids. It is the most current data at the time of publication.

1. United States

Production: 21.91 million barrels per day (includes crude oil and liquids)

The US is the largest oil-producing country in the world, with output of 21.91 million barrels per day in 2023, taking the spot for the sixth year in a row. The US has been described as a swing producer because its production fluctuates alongside market prices. Texas leads the way as the biggest oil-producing state in the nation, with output more than three times as high as the second biggest oil-producing state, New Mexico.

In addition to being the largest oil producer in the world, the US is a big consumer of oil. In 2023, the US consumed an average of 20.5 million barrels per day of petroleum products.

In its October 2024 Short Term Energy Outlook, the EIA forecast that US crude oil production, including lease condensate, will come in at an average of 13.22 million barrels per day in 2024 and 13.54 million barrels per day the following year.

2. Saudi Arabia

Production: 11.13 million barrels per day (includes natural gas liquids)

Saudi Arabia’s oil output came in at 11.13 million bpd in 2023. The country possesses 17 percent of the world’s proven petroleum reserves and is the largest petroleum exporter. Its oil and gas sector accounts for around 50 percent of its gross domestic product and about 85 percent of its export earnings.

Saudi Arabia has played a key role in OPEC’s decisions to curb oil output in recent years. In 2022, the country’s US relations soured to the point that the country was unwilling to increase production in an effort to bring down rising gasoline prices.

The Associated Press notes that ‘the Saudis need higher oil prices to fund ambitious plans by Crown Prince Mohammed bin Salman to diversify the country’s economy away from fossil fuel exports.’

However, there are signs that Saudi Arabia’s leader may be inclined to break with OPEC+ and increase its oil production. Some analysts are suggesting that the Crown Prince may be willing to deal with the economic pain of lower oil prices if it translates into a greater market share.

3. Russia

Production: 10.75 million barrels per day (includes natural gas liquids)

Prior to production cuts in 2020, Russian oil output had spent a number of years rising; it came in at 10.75 million bpd in 2023. Most of Russia’s reserves are located in West Siberia, between the Ural Mountains and the Central Siberian Plateau, as well as in the Urals-Volga region, extending into the Caspian Sea. As a member of OPEC, Russia is also curbing its production in 2024.

In response to Russia’s war in Ukraine, Canada, the US, the UK and Australia have banned imports of Russian oil, representing about 13 percent of Russia’s exports. In March 2022, the International Energy Agency (IEA) warned that Russia could be forced to cut 30 percent of its crude oil production, resulting in a serious global oil supply crisis. “The implications of a potential loss of Russian oil exports to global markets cannot be understated,” the IEA said at the time.

While Russia’s oil exports rebounded to pre-war levels as early as April 2023 with heavy demand from China and India. However, Ukraine’s tactic of striking Russia’s key oil refineries in 2024 as a part of its defense strategy has reportedly impacted 17 percent of Russia’s oil refinery capacity as of July.

4. Canada

Production: 5.76 million barrels per day

Next on this list of the top 10 oil-producing nations is Canada. Canada’s annual oil production rose by about 10,000 bpd from the previous year to 5.76 million bpd in 2023.

Nearly all of Canada’s proven oil reserves are located in Alberta, and according to the province’s government, 97 percent of oil reserves there are in the form of oil sands. The vast majority of Canada’s total energy exports are to the USA. In fact, in 2023, 60 percent of US crude imports originated from Canada compared to 33 percent in 2013.

However, because of economic and political considerations, Canada is developing ways to diversify its trading partners, especially by expanding ties with emerging markets in Asia. For this year, all eyes are on the Trans Mountain pipeline expansion in Western Canada, which was finally completed and operational as of May 1.

5. China

Production: 5.26 million barrels per day

China’s annual oil output was 5.26 million barrels per day in 2023. The nation is the world’s second largest consumer of oil and moved from being the second largest net importer of oil to the largest in 2014.

China is the world’s most populous country and has a rapidly growing economy, factors that have driven its high overall energy demand. The Asian country is the top consumer of oil, with the majority its imports coming from OPEC member countries Russia, Saudi Arabia and Iraq. Unsurprisingly, Chinese demand can strongly influence the oil market.

However, its oil production in 2024 is in decline. As of September, China’s oil refinery output fell for the sixth straight month, Reuters reported. Recent new discoveries look difficult to develop at the same time that production out of mature fields is falling.

In early July, the Chinese government announced the establishment of a new state-controlled body to coordinate collaboration between national oil producers and other state entities to extract harder to reach oil and gas reserves and more difficult non-conventional sources.

6. Iraq

Production: 4.42 million barrels per day

Still the second-largest oil producer in OPEC, Iraq’s annual oil production declined from 4.55 million bpd in 2022 to 4.42 million bpd for 2023.

Iraq holds 145.02 billion barrels of proven oil reserves based on 2023 OPEC data, representing 11.7 percent of global reserves. The nation’s capacity to boost production has been constrained by infrastructure and export bottlenecks. Reuters reported in early August that the Iraqi government and energy giant BP (LSE:BP,NYSE:BP) have signed a preliminary agreement to develop four oil and gas fields in the country’s northern Kirkuk region.

7. Brazil

Production: 4.28 million barrels per day

According to the IEA, total primary energy consumption in Brazil has nearly doubled in the past decade due to sustained economic growth. The largest share of Brazil’s total energy consumption is oil and other liquid fuels, followed by hydroelectricity and natural gas.

Brazil is reportedly on track to become the world’s fourth largest oil producer in the coming years. In 2024, the country’s oil output is expected to contribute significantly to global oil supply growth. The country’s top oil producer, Petrobras, is making efforts to extract as much oil as it can from its existing fields while searching for new deposits, BNN Bloomberg reported in October.

8. United Arab Emirates

Production: 4.16 million barrels per day

The United Arab Emirates (UAE) is another OPEC member and has ranked among the world’s top 10 oil-producing countries for decades. In 2023, it saw a slight drop in production on OPEC production cuts. The country has proven oil reserves of 111 billion barrels, with most of those reserves located in Abu Dhabi.

The Abu Dhabi National Oil Company upped its crude oil output capacity to 4.85 million bpd in early May 2024 and has a planned target of 5 million bpd by 2027. However, its production was limited to 2.91 bpd of crude oil in the first half of 2024

The National Bank of Kuwait is forecasting that the UAE’s oil production will increase by 7.8 percent next year to reach 3.4 million barrels per day by the end of 2025.

9. Iran

Production: 3.99 million barrels per day

Iran ranks ninth in the world for oil production, and its total oil output grew from 3.66 million bpd in 2022 to 3.99 million barrels per day in 2023. According to the EIA, Iran holds the world’s third largest proven oil reserves, as well as the world’s second largest natural gas reserves. The majority of its 1.3 million bpd in oil exports last year went to Asia.

US sanctions and regional disputes have all weighed on Iran’s energy production sector. Despite its abundant reserves, Iran’s total oil production is still far below the 4.78 million bpd the country produced back in 2017. However, in May 2024 Iran’s crude oil and gas condensate exports reportedly reached 1.7 million barrels per day, representing a 5 year high.

As of October 2024, there are slight concerns a wider escalation of its ongoing conflict with Israel could lead to attacks on Iran’s oil infrastructure. The US recently imposed further sanctions on Iran in response to its attacks on Israel.

10. Kuwait

Production: 2.91 million barrels per day

Last on this list of the top 10 oil-producing countries is Kuwait, which produced 2.91 million barrels per day in 2023. The country has struggled in recent years to bring its oil output back up to 3.5 million bpd, with reports that key infrastructure projects have been delayed by internal political strife.

Kuwait’s oil and gas sector accounts for about 50 percent of the country’s GDP, and an even larger share of its export revenues at around 90 percent. New oil discoveries have given the country hope of increasing its oil output in the coming years. As of October 2024, Kuwait is reportedly preparing to open bidding for oil field development projects.

FAQs for oil investing

1. United States

Production: 1.35 trillion cubic meters

The US is by far the largest producer of natural gas in the world, representing nearly a quarter of global natural gas production. Its output has increased by more than 350 billion cubic meters in the past decade owing to the increasing cost of coal, and advancements in extraction technology such as horizontal drilling and hydraulic fracturing, also known as fracking.

In addition to being a major natural gas producer, the US is also the biggest consumer of the fuel. In 2023, US demand for natural gas totaled 886.5 billion cubic meters, primarily for home heating and generating electricity. In the first half of 2022, Reuters reported that the US became the world’s largest exporter of liquefied natural gas (LNG) as the country increased shipments to Europe due to Russia’s war in Ukraine, and it continues to hold that title.

In 2023, the Appalachia region led US natural gas production, contributing 29 percent of the total output. However, production growth has been hampered by limited pipeline capacity, restricting the transport of gas to demand markets.

For the first seven months of 2024, the US exported 4.42 billion cubic meters of natural gas, a 3.3 percent increase from 2023’s 4.34 billion cubic meters, and 7.5 percent more than 2022’s 4.12 billion cubic meters.

High international demand and steady domestic consumption growth will keep the US a net exporter of petroleum products and natural gas through 2050. Despite the shift to renewable electricity generation, US natural gas production is expected to rise due to increased international demand for liquefied natural gas, according to the US Energy Information Administration’s Annual Energy Outlook 2023.

2. Russia

Production: 586.4 billion cubic meters

As the second largest exporter and the next largest producer of natural gas in the world, Russia also holds the biggest-known natural gas reserves on the planet. The country’s state-owned energy group Gazprom reportedly holds a 16.3 percent share of global natural gas reserves. Novatek is another of the country’s main gas producers.

“Historically, production was concentrated in West Siberia, but investment has shifted in the past decade to Yamal and Eastern Siberia and the Far East, as well as the offshore Arctic,” according to the International Energy Agency.

Europe’s rejection of Russian natural gas products led to a 41 percent decline in revenues for the country’s producers in the first three quarters of 2023, reported Reuters.

Despite the conflict between Russia and Ukraine, the latter has remained a crucial corridor for Russian natural gas into the EU. In September 2024, Russian natural gas exports that traveled through Ukraine totaled 1.26 billion cubic meters.

However, this is likely to change next year as Ukraine announced plans to end its Russian gas transit agreement, a move that analysts expect will intensify the energy tensions between the two countries.

When the current agreement expires at the end of 2024, the major route through which Russian natural gas flows to Europe will be cut off, potentially disrupting supply chains and raising concerns over energy security across the region.

3. Iran

Production: 251.7 billion cubic meters

Iran is the third largest natural gas-producing country, representing about 6 percent of global output. The Middle Eastern nation ranks second in terms of natural gas reserves. However, its natural gas infrastructure is far behind the top two natural gas producers.

Iran has tripled its natural gas production in the past decade, becoming the Middle East’s largest producer. Iran and Qatar share the world’s largest natural gas field. Iran’s portion is known as South Pars and Qatar’s, North Dome.

Iran plans to boost its production capacity by 30 percent within five years, supported by an US$80 billion investment in its gas fields, according to the nation’s Oil Minister Javad Owji. However, Qatar’s expansion of liquefied natural gas production in North Dome poses a challenge to Iran’s output ambitions.

Turkey and Iraq are major importers of Iranian natural gas, while Turkmenistan and Armenia have swap deals with Iran.

In early October, Iran and Russia signed a long-term natural gas supply deal, with Russia’s Gazprom committing to supply 109 billion cubic meters of gas to Iran annually. The agreement will boost Iran’s gas capacities, and the country plans to use the gas domestically and for re-export to countries like Turkey, Pakistan and Iraq.

The deal could also enhance regional energy security and counter the impact of sanctions such as the US ones on Iran’s energy sector.

4. China

Production: 234.3 billion cubic meters

In recent years, China’s government has incentivized the transition from coal to natural gas to reduce air pollution and meet emissions targets. Since 2013, natural gas production in China has grown by 92.3 percent, from 121.8 billion cubic meters in 2013 to 234.3 billion cubic meters in 2023, an all-time record.

China still relies on imports to meet about half of its demand. Australia, Turkmenistan, the US, Malaysia, Russia and Qatar are some of its biggest providers.

“In March 2022, China’s government released its 14th Five-Year Plan (2021-25), which sets the domestic natural gas production target at 22.3 (billion cubic feet per day) by 2025, or 3.0 (billion cubic feet per day) more than domestic production in 2021,” according to the US Energy Information Administration (EIA).

Unconventional gas sources such as shale, coal-bed methane and natural gas hydrates accounts for an estimated 43 percent of China’s total gas output.

Noted in a September Bloomberg report, China has significantly increased its underground natural gas storage ahead of winter, reflecting preparation for both peak demand and possibly reduced consumption due to a slowing economy.

The well-stocked reserves, combined with expanded storage facilities, could cushion against harsh winter conditions, but a mild season may reduce imports, especially costly liquefied natural gas spot purchases.

China’s increased domestic gas production, long-term LNG contracts and a sluggish economy, combined with expanding renewable energy, challenge future gas demand growth.

5. Canada

Production: 190.3 billion cubic meters

Canada holds 83 trillion cubic feet of proved natural gas reserves, and the Western Canadian Sedimentary Basin (WCSB) is the prime source of the majority of Canada’s natural gas production. In addition to the WCSB, offshore fields near Newfoundland and Nova Scotia, the Arctic region and the Pacific coast hold significant natural gas reserves.

Canada is also a top natural gas exporter, relying exclusively on pipelines, with the US as its only trading partner. In 2022, 99 percent of all US natural gas imports came from its neighbor to the north. The fact that Canada lacks LNG infrastructure makes it an unlikely potential source for meeting Europe’s natural gas needs in lieu of Russia.

According to the data from the Government of Canada, natural gas production rose in 2023, averaging 17.9 billion cubic feet per day. In December, output hit 18.8 billion cubic feet per day. Notably, production levels exceeded 18 billion cubic feet per day for eight of the 12 months.

In mid-September, LNG Canada provided an update on the LNG Canada project and the Coastal GasLink pipeline, which LNG Canada CEO Jason Klein said is now 95 percent complete.

Once finished, the pipeline will be used to export Canadian natural gas to Asian markets, “putting Canada on the global map of LNG exporting countries and creating a world-leading LNG industry in British Columbia and Canada.”

First shipments are scheduled for mid-2025.

6. Qatar

Production: 181 billion cubic meters

Qatar is the sixth largest natural gas producer and hosts the third largest proved natural gas reserves in the world. The majority of its reserves are located in the world’s largest natural gas field, the offshore North Field, which it shares with Iran.

The Middle Eastern country also ranks as the third largest natural gas exporter and is third in the world in LNG exports as of October 2023. In recent years, Qatar has made moves to capitalize further on its resources in an effort to expand its footprint in the international natural gas market. Statista reports that state-owned Qatar Petroleum is looking “to increase its LNG export market to compete with Russian LNG deliveries.”

In early 2024 Qatar unveiled plans to increase production from the world’s largest natural gas field, aiming to raise capacity to 142 million metric tons per annum by 2030.

The North Field expansion, referred to as North Field West, is anticipated to contribute an additional 16 million metric tons of liquefied natural gas annually to the existing expansion efforts.

7. Australia

Production: 151.7 billion cubic meters

Since 2009, Australia has added 113 billion cubic meters of natural gas production. Nearly all of Australia’s natural gas resources are located in the massive gas fields on the North West Shelf, “providing feedstock to seven LNG projects.”

Australia’s LNG exports have grown exponentially over the past decade as several new production facilities have come online. Today, Australia has the second largest operating LNG export capacity in the world.

In late 2023, major Australian energy company Santos said it expects a decline in its natural gas production for 2024 as its Bayu-Undan offshore gas field in the Timor Sea is nearing depletion.

The federal government released its Australia’s Future Gas Strategy in May 2024. The initiative focuses on ensuring energy security and supporting the transition to net-zero by 2050 by boosting natural gas production. The government plan highlights the need for new gas supplies to prevent shortages by 2028 on the east coast and 2030 on the west coast.

While supportive of the plan, Australia’s energy producers have raised concerns of potential gas supply shortfalls by the end of the decade amid global market volatility.

Meg O’Neill, chair of Australian Energy Producers, highlighted that without action, Australia’s east and west coasts could face shortages by 2028 and 2030, respectively, which could drive up energy prices.

8. Norway

Production: 116.6 billion cubic meters

Norway is the world’s eighth largest natural gas producer and third largest natural gas exporter. The Scandinavian country has understandably replaced Russia as the major supplier to the European natural gas market. In 2023, Norway reportedly accounted for 30.3 percent of natural gas supplied to the EU.

Norway’s natural gas companies have ramped up production in response to increased demand, and in mid-2023 the government gave the green light to 19 oil and gas extraction projects in the country.

In early 2024, some concern arose that the industry may face headwinds from a proposal by a climate change committee to temporarily suspend new licenses while the government decides on a climate strategy. However, in May the government offered licenses for 37 new blocks and emphasized the industry’s importance to Norway and Europe.

Near-term gas production is forecasted to contract slightly in 2025 according to the Norwegian Budget Bill released in early October. The country’s natural gas output is expected to decline by 1.6 percent, from 123 billion cubic meters in 2024 to 121 billion cubic meters in 2025.

9. Saudi Arabia

Production: 114.1 billion cubic meters

The ninth largest natural gas-producing country, Saudi Arabia has seen its output steadily increase since 2013, reaching a record 116.7 billion cubic meters in 2022.

Mordor Intelligence reports that this production growth was due in large part to increased development of standalone natural gas wells. State-run Saudi Aramco has awarded contracts to energy companies looking to develop the country’s largest unconventional gas field, Jafurah, located near the Persian Gulf.

Currently the country does not export its natural gas production; however, the government plans to begin natural gas exports by 2030. According to the EIA, Saudi Arabia is working to replace “crude oil, fuel oil, and diesel-powered electric generators with natural gas and renewable energy generation by 2030, which will likely increase domestic natural gas demand.”

In late 2023, Saudi Arabia began investing in the LNG market with Saudi Aramco buying a stake in MidOcean Energy, which is set to acquire interests in four Australian LNG projects. In July 2024, Aramco awarded contracts worth US$12.6 billion to expand production in the Jafurah field.

10. Algeria

Production: 101.5 billion cubic meters

Rounding out the top 10 natural gas-producing countries is Algeria, which produced 101.5 billion cubic meters of natural gas in 2023. The country’s output increased year-over-year from 97.6 billion cubic meters in 2022.

Algeria has the fifth largest LNG export capacity in the world. In 2022, nearly 85 percent of the country’s exports went to feed Europe’s natural gas demand. Italy signed an agreement with Algeria last year to increase the amount of natural gas it imports from the North African country.

From 2023 to 2028, the Algerian government expects to see its natural gas production increase by 1.4 percent annually.

In late May, Algeria signed two key hydrocarbon deals with US firms ExxonMobil (NYSE:XON) and Baker Hughes (NASDAQ:BKR) to boost its natural gas production and enhance exports to Europe. This comes as European nations seek alternatives to Russian gas amid rising demand.

FAQs for gas investing

Investor Insight

Galan Lithium’s investment appeal is driven by its Hombre Muerto West project, a top 20 global lithium resource featuring high-grade, low-cost lithium brine concentrate, on track for near-term production in Argentina’s renowned mining region.

Overview

Argentina is no stranger to lithium mining. The South American nation is one of three encompassed in the prolific Lithium Triangle, a region that holds more than 60 percent of the world’s lithium resources. Argentina has the world’s second greatest endowment of lithium reserves (17 Mt), concentrating lithium operations in the provinces of Jujuy, Salta and Catamarca.

Demand for lithium is forecasted to grow from approximately 1 Mt LCE in 2024 to around 3Mt in 2030, a compound annual growth rate of around 20 percent. Argentina has committed to $7 billion worth of investment for lithium production with strong growth projected for exports at $1.1 billion in 2023.

Galan Lithium (ASX:GLN,FSX:9CH) is an Australia-based international mining development company focused on its high-quality lithium brine projects in Argentina – Hombre Muerto West and Candelas. The company also holds a highly prospective lithium project in Australia – Greenbushes South.

The company’s flagship Hombre Muerto West (HMW) project hosts some of Argentina’s highest grade and lowest impurity levels with an inventory of 8.6 million tons (Mt) contained LCE @ 859 mg/L lithium, with 4.7 Mt contained LCE @ 866 mg/L Li in the measured category. The 100-percent-owned property is strategically located near Rio Tinto’s recently acquired Arcadium Lithium project, highlighting its position within a highly sought-after lithium region

Galan has signed a commercial agreement with the Catamarca Government supporting the grant of permits to enable the commercialisation of lithium chloride concentrate from HMW to be sold locally or exported internationally.

In August 2024, Galan entered into a memorandum of understanding with Chengdu Chemphys Chemical Industry Co. for an offtake prepayment agreement for the HMW project. Once a definitive agreement is executed, Chemphys will purchase a total of 23,000 tonnes lithium carbonate equivalent, as a lithium chloride product, over the first five years of production from Phase 1 of the HMW project. Chemphys will also provide Galan with an offtake prepayment facility to facilitate the continued development of Phase 1 of the HMW project.

Catamarca Governor Raúl Jalil and Galan Lithium Managing Director Juan Pablo Vargas de la Vega in Catamarca.

In September 2024, Galan successfully completed a capital raising of AU$20 million, including a fully-subscribed Entitlement Offer of $13.3m, reflecting strong shareholder support and confidence in the Company’s strategic direction and the development of its HMW project

In addition to Hombre Muerto West, Galan Lithium’s portfolio includes several strategically positioned projects that complement its flagship asset:

• Candelas Project (Argentina): Located within the Hombre Muerto Basin, this underexplored project boasts a maiden resource estimate of 685kt LCE and is incorporated into Galan’s Phase 4 expansion plans targeting 60ktpa LCE production by 2030.
• Greenbushes South Project (Australia): Situated just 3 kilometres south of the world-class Greenbushes lithium mine, this project offers strong exploration potential for lithium-bearing pegmatites. Galan is progressing land access agreements and holds an exploration license through to 2029.
• James Bay & Ontario Projects (Canada): In 2023, Galan acquired property blocks in Quebec and Ontario located in globally recognized lithium provinces, providing further exploration upside in key jurisdictions.

Backed by a highly experienced management team, Galan is well-positioned to advance these complementary projects while maintaining its primary focus on developing HMW into a world-class lithium production hub.

Company Highlights

• Galan Lithium is an ASX-listed company developing lithium brine projects within South America’s lithium triangle on the Hombre Muerto salar in Argentina.
• The company has two high-quality projects in the works: its flagship Hombre Muerto West (HMW) and the Candelas lithium project, both in Argentina. The two projects combined bring the company’s current total mineral resource estimate to 8.6 million tons lithium carbonate equivalent @ 859 mg/L lithium.
• HMW leverages advantageous positioning near Arcadium Lithium’s project, which is subject to an acquisition by Rio Tinto, highlighting the strategic importance of this high-grade lithium region
• Galan’s lithium Resources are ranked among the top 20 in the world
• HMW sits in the lowest quartile of the global lithium cost curve, leveraging brine extraction advantages for cost efficiency
• High-grade, low-impurity brine concentrate validated by robust offtake interest and market alignment
• Galan’s phased approach and strong stakeholder collaboration mitigate risks and ensure steady progress toward first production in 2025
• The HMW Phase 1 (5.4 ktpa LCE) execution plan is progressing well with the delivery of the first evaporation-ready pond expected in 2024, and production in H2 2025.
• Galan has signed a commercial agreement with the Catamarca Government enabling the commercialisation of lithium chloride concentrate from HMW to be sold locally or exported internationally.
• Galan is the first mining company to apply for the Argentine ‘RIGI’, an incentive regime for large scale investments
• Galan is transitioning into a major lithium project developer and remains committed to conducting fast-tracked lithium development in its prolific projects with a target production of 60 ktpa LCE from HMW and Candelas by 2030.

Key Projects

Hombre Muerto West Project

The 100-percent-owned Hombre Muerto West project is a large land property that sits on the west coast of the Hombre Muerto salar in Argentina, the second-best salar in the world for the production of lithium from brines. The property also leverages strategic positioning near Arcadium Lithium, recently acquired by Rio Tinto.

Galan has increased HMW’s mineral resource to 8.6 Mt contained LCE @ 859 mg/L lithium (previously 7.3 Mt LCE @852 mg/L lithium), one of the highest grade resource estimates declared in Argentina. HMW’s measured resource is now at 4.7 Mt contained LCE @ 866mg/L lithium. Inclusion of the Catalina tenure adds ~1.3 Mt LCE to the HMW resource.

The pilot plant at HMW has validated the production of lithium chlorine concentrate, adding reagents to eliminate impurities, and generating a concentrate at 6 percent lithium. The plant comprises pre-concentration ponds, a lime plant, a filter press and concentration ponds.

Pilot Plant at HMW

Construction for Phase I has already commenced for 5.4 ktpa LCE production at HMW, and aims to deliver lithium chloride production in H2 2025. The fourth long-term pumping test (PBRS-03-23) results at HMW record an outstanding lithium mean grade of 981 mg/L – the highest reported grade from a production well in the Hombre Muerto Salar.

In October 2024, Galan announced 45 percent project completion with pond construction at 76 percent and project execution is advancing as planned.

A definitive feasibility study (DFS) for phase 2 shows a 20.85 ktpa LCE operation at HMW, targeting high-quality, 6 percent concentrated lithium chloride product (equivalent to 12.9 percent lithium oxide or 31.9 percent LCE) in 2026. The DFS also indicated phase 2 will deliver a post-tax NPV (8 percent) of US$2 billion, IRR of 43 percent and free cash flow of US$236 million per year. Phase 2 provides an exceptional foundation for significant economic upside in phases 3 and 4, targeting 60 ktpa LCE production by 2030.

Galan has entered into a memorandum of understanding with Chengdu Chemphys Chemical Industry Co. for a prepayment offtake agreement. Once a definitive agreement is executed, Chemphys will purchase a total of 23,000 tonnes of lithium carbonate equivalent, as a lithium chloride product, over the first five years of production from Phase 1 of the HMW project.

Chemphys will also provide Galan with a US$40 million offtake prepayment facility to facilitate the continued development of the HMW project.

Galan now has 100 percent full ownership of the Catalina tenement that borders the Catamarca and Salta Provinces in Argentina. The newly secured Catalina tenure has a strong potential to significantly add to the existing HMW resource. The tenure also covers the Catalina, Rana de Sal II, Rana de Sal III, Pucara del Salar, Deseo I and Deceo II tenements.

Greenbushes South Lithium Project

The 100-percent-owned Greenbushes South lithium project is located near Perth, Western Australia, and is three kilometers south of the world-class Greenbushes lithium mine, managed by Talison Lithium. The Greenbushes South tenements can be found along the Donnybrook-Bridgetown Shear Zone geologic structure, which hosts the lithium-bearing pegmatites at the Greenbushes Lithium Mine.

Greenbushes South covers nearly 315 square kilometers, and hosts elevated pathfinder elements with well-defined anomalies adjacent to the property.

Management Team

Richard Homsany – Non-executive Chairman

Richard Homsany is an experienced corporate lawyer and has extensive board and operational experience in the resources and energy sectors. He is the executive chairman of ASX-listed uranium exploration and development company Toro Energy Limited, executive vice-president of Australia of TSX-listed uranium exploration company Mega Uranium and the principal of Cardinals Lawyers and Consultants, a boutique corporate and energy and resources law firm. He is also the chairman of the Health Insurance Fund of Australia (HIF) and listed Redstone Resources and Central Iron Ore and is a non-executive director of Brookside Energy Homsany’s past career includes time working at the Minera Alumbrera Copper and Gold mine located in the Catamarca Province, northwest Argentina.

Juan Pablo (‘JP’) Vargas de la Vega – Founder and Managing Director

Juan Pablo Vargas de la Vega is a Chilean/Australian mineral industry professional with 20 years of broad experience in ASX mining companies, stockbroking and private equity firms. JP founded Galan in late 2017. He has been a specialist lithium analyst in Australia, has also operated a private copper business in Chile and worked for BHP, Rio Tinto and Codelco.

Daniel Jimenez – Non-executive Director

Daniel Jimenez is a civil and industrial engineer and has worked for a world leader in the lithium industry, Sociedad Química y Minera de Chile, for over 28 years. He was the vice-president of sales of lithium, iodine and industrial chemicals where he formulated the commercial strategy and marketing of SQM’s industrial products and was responsible for over US$900 million worth of estimated sales in 2018.

Terry Gardiner – Non-executive Director

Terry Gardiner has 25 years’ experience in capital markets, stockbroking and derivatives trading. Prior to that, he had many years of trading in equities and derivatives for his family accounts. He is currently a director of boutique stockbroking firm Barclay Wells, a non-executive director of Cazaly Resources, and non-executive chairman of Charger Metals NL. He also holds non-executive positions with other ASX-listed entities.

María Claudia Pohl Ibáñez – Non-executive Director

María Claudia Pohl Ibáñez is an industrial civil industrial engineer with extensive experience in the lithium production industry. Until recently, she worked for world leader in the lithium industry Sociedad Química y Minera de Chile (NYSE:SQM, Santiago Stock Exchange:SQM-A, SQM-B) for 23 years, based in Santiago, Chile. During her time at SQM, she held numerous senior leadership roles including overseeing lithium planning and studies. Ibáñez brings significant lithium project evaluation and operational experience whilst joining the board at a critical juncture in Galan’s journey to becoming a significant South American lithium producer. Since leaving SQM in late 2021, Ibáñez has been managing partner and general manager of Chile-based Ad-Infinitum, a process engineering consultancy, with a specific focus on lithium brine projects under study and development, and the associated project evaluations.

Ross Dinsdale – Chief Financial Officer

Ross Dinsdale has 18 years of extensive experience across capital markets, equity research, investment banking and executive roles in the natural resources sector. He has held positions with Goldman Sachs, Azure Capital and more recently he acted as CFO for Mallee Resources. He is a CFA charter holder, has a Bachelor of Commerce and holds a Graduate Diploma in Applied Finance.

China considers EV battery technology export restrictions

The announcement of South Africa’s tax incentive came just over a week before China’s proposal to impose new export restrictions on EV-related technology.

Beijing’s Commerce Ministry is reviewing measures that would limit the export of battery cathode technology and techniques used in mineral extraction critical to EV production, according to CNN.

China’s proposal forms part of broader and escalating trade tensions with the United States.

In recent months, China imposed restrictions on the sale of gallium, germanium and antimony, essential materials for semiconductors and advanced technologies.

The latest proposed measures could further impact global supply chains, reinforcing China’s dominance in lithium processing and EV battery production.

“What we can tell you as a principle is that China implements fair, reasonable and non-discriminatory export control measures,” Mao Ning, spokesperson for China’s Foreign Ministry, said in a press conference on January 4.

Industry analysts suggest that the proposed curbs may serve as leverage in trade negotiations, with potential implications for Western automakers reliant on Chinese technology.

South Africa’s position as a producer of key minerals places it at the center of this evolving landscape.

The global market for lithium-ion batteries and electric vehicles is projected to grow significantly over the next decade. McKinsey forecasts sales of passenger electric vehicles to rise from 4.5 million in 2021 to 28 million in 2030.

Currently, China controls around 70 percent of global lithium processing. Industry analysts believe that further export restrictions would reinforce this position.

BYD (OTC Pink:BYDDF,HKEX:1211), one of China’s largest EV manufacturers, has accelerated its international expansion, while CATL (SZSE:300750), the world’s leading battery producer, holds approximately 40 percent of the global market share.

The South African government is expected to consult with industry stakeholders on additional measures to support the automotive transition.

Meanwhile, automakers will closely monitor developments in China’s export policy, recognizing the potential impact on global supply chains and future investments.