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
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A

Country

Argentina

Sector

Manufacturing

Status

Proposed

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
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09/26/2023

Approval date

N/A

Signed date

N/A

Sponsoring entity

Allkem Limited

Team leader

Parodi, Juan

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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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

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

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Contact information

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Alternatively, you may also use the following contact information:

Client Contact

CONTACT NAME

Natalia Wanrooy

POSITION

Especialista en Desarrollo Corporativo

PHONE NUMBER

+54 9 11 3210 1601

EMAIL

natalia.wanrooy@allkem.co

IDB Invest Contact

EMAIL

requestinformation@idbinvest.org

PHONE

+1(202)-566-4566

ADDRESS

1350 New York Ave NW, Washington, DC 20005

COUNTRY OFFICES

IDB Invest Country Offices