Company name
Galaxy Lithium S.A.
Project number
14587-01
Category A projects could result in potentially significant environmental and/or social risks and impacts, which are diverse, irreversible, or unprecedented that may extend beyond the boundaries of the actual project site or facilities. In principle, Category A includes projects which have significant impacts on protected or sensitive areas21 and/ or vulnerable groups.
E&S category 
A
Country
Argentina
Sector
Manufacturing
Status
Approved
Disclosed date
05/11/2023
Projected date at which a project will be put forward for the Board of Executive Directors’ approval.
Projected board date
10/10/2023
Approval date
10/10/2023
Signed date
N/A
Sponsoring entity
Allkem Limited
Team leader
N/A
Investment type
Syndicated amount
N/A
Financing amount
USD $ 50,000,000
Currency
USD
Project scope and objective
Sal de Vida (the "Project") is a project for the development, construction, and operation of a lithium facility located in the province of Catamarca in the Salar del Hombre Muerto, approximately 1,400 km northwest of Buenos Aires, Argentina. The project includes the development, construction, and operation of a 15ktpa lithium carbonate project, of predominantly battery grade quality. The transaction will be structured as a 9.5-year senior loan with a 30-month grace period. Lithium is a critical mineral in the global transition to a low-carbon future, as it is one of the most suitable metals for batteries. The demand for lithium-ion batteries has accelerated in recent years due to increasing global demand for electric vehicles (EVs), mobile devices, and networked storage, which has transformed the market dynamics.
The Project Company or the Borrower, Galaxy Lithium Sal de Vida S.A., incorporated in Argentina, is a wholly owned subsidiary of Allkem Limited (Allkem), the Sponsor; Allkem is based in Argentina and is listed on the Australian Stock Exchange (ASX: AKE) and the Toronto Stock Exchange (TSX: AKE). Allkem is the result of the merger of equals between Orocobre Limited and Galaxy Resources Limited in August 2021. Allkem is one of the largest lithium chemical companies by production and market capitalization, with a market share of ~10%.
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Environmental and social review
IDB Invest conducts an environmental and social due diligence (ESDD) commensurate with the nature, scale, and stage of the project, and with its level of environmental and social risks and impacts. The ESDD will confirm the project E&S categorization and assess the project with respect to the client requirements in IDB Invest Environmental and Social Sustainability Policy. The results of the ESDD, including any identified gaps are described in the Environmental and Social Review Summary (ESRS) provided below. For projects approved as of 2016, any gaps with respect to IDB Invest's Environmental and Social Sustainability Policy at the time of the ESDD are addressed in the Environmental and Social Action Plan (ESAP) presented below, to comply with the date mentioned above.
SAL DE VIDA - ENVIRONMENTAL AND SOCIAL REVIEW SUMMARY (ESRS)
368.6 Kb
SAL DE VIDA - ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP)
204.8 Kb
Client files
This section provides the key environmental and social assessment documents produced by the client for this project.
SDV - ADENDA DE ACTUALIZACIÓN DE INFORME DE IMPACTO AMBIENTAL -EIA
53.0 Mb
SDV - SUPPLEMENTAL SOCIAL BASELINE
1.2 Mb
SDV - INFORME DE IMPACTO AMBIENTAL (EIA)
109.0 Mb
SDV - SUMMARY OF THE CUMULATIVE IMPACT ASSESSMENT
235.5 Kb
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Contact information
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Request informationAlternatively, you may also use the following contact information:
Client Contact
CONTACT NAME
N/A
POSITION
N/A
PHONE NUMBER
+54 9 11 3210 1601
natalia.wanrooy@allkem.co
IDB Invest Contact
requestinformation@idbinvest.org
PHONE
+1(202)-566-4566
ADDRESS
1350 New York Ave NW, Washington, DC 20005
COUNTRY OFFICES
IDB Invest Country OfficesIndividuals or communities can submit complaints and concerns related to environmental, social, or corporate governance issues to the Management Grievance Mechanism by e-mailing mgm@iadb.org or by calling +1 202 312 4040.
As a last resort, affected communities have access to the IDB Invest Independent Consultation and Investigation Mechanism by writing to mecanismo@iadb.org or MICI@iadb.org or calling +1(292) 623-3952.
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Early disclosure
For projects with high environmental or social risk an Environmental and Social Strategy (ESS) is prepared early on during the project appraisal and prior to carrying out the environmental and social due diligence (ESDD). The ESS includes the initial E&S risk categorization and a brief description of potential Performance Standards applicable to the project. The ESS for this project is available below. Together with the ESS, IDB Invest also provides access to the client’s preliminary E&S documents that will be reviewed during the ESDD. The client E&S documents for this project can be found under the “CLIENT FILES” section below. Once the environmental and social due diligence is completed, an Environmental and Social Review Summary (ESRS) for the Project will be published on this page.
SAL DE VIDA - ENVIRONMENTAL AND SOCIAL STRATEGY (ESS)
163.8 Kb
SAL DE VIDA - DEVELOPMENT BRIEFING
112.6 Kb