WASHINGTON — IDB Invest will provide financing of up to $700 million for POSCO Argentina S.A.U. to support the expansion of lithium extraction and production at the Sal de Oro Project in the Salar del Hombre Muerto, located between the provinces of Salta and Catamarca, Argentina.
The transaction will support the initiation and gradual increase in production at two POSCO Argentina plants: one for lithium hydroxide production and a second for lithium carbonate. The latter project is included in the Argentine government's Large Investment Incentive Program (RIGI).
The project will help expand Argentina's lithium processing capacity by increasing the production of lithium compounds used in battery manufacturing with higher value added. This will strengthen the country's participation in more advanced segments of the global supply chain for critical minerals and create new development opportunities.
The financing is part of IDB LAC Minerals, the IDB Group initiative to develop safer, higher-value-added supply chains for critical minerals originating in Latin America and the Caribbean.
"This operation reflects IDB Invest's commitment to supporting the development of critical minerals supply chains across the region. Through IDB LAC Minerals, we seek to support investments that strengthen the region's productive capabilities, create opportunities for local businesses, and expand participation in more-advanced industrial segments," said James Scriven, CEO of IDB Invest.
Once fully operational, Sal de Oro is expected to produce and export approximately 48,000 tons of lithium products annually, generate about 620 permanent, formal jobs, and create new opportunities for local and regional suppliers of goods and services.
The financing structure combines an IDB Invest A-loan of up to $250 million with the potential mobilization of up to $450 million from international financial institutions. The facility is designed to support the project's short-term needs during its commissioning and operational scaling phase while incorporating private capital through an A/B loan structure.
In addition to financing, IDB Invest will support the company through an Environmental and Social Action Plan and a Corporate Governance Action Plan aimed at strengthening risk management, community engagement, responsible management of natural resources, and corporate governance practices. These actions seek to reinforce sustainability standards and contribute to the development of a resilient, long-term operation.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 440 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries. Visit our website: www.idbinvest.org/en.
About POSCO Argentina
POSCO Argentina S.A.U. is the Argentine subsidiary of POSCO Holdings Inc. and the vehicle through which the group develops its lithium business in the country. The company is responsible for the Sal de Oro Project, located in the Salar del Hombre Muerto, and forms part of the POSCO Group's strategic critical minerals and battery materials business. The project combines extraction and downstream processing to produce battery-grade lithium hydroxide and lithium carbonate.