KEY PONTS
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IDB Invest is leading a $700 million financing package to help Posco Argentina expand its Sal de Oro lithium project.
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The project will produce roughly 48,000 tonnes of lithium a year and is expected to generate around 620 jobs.
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The funding will strengthen Argentina’s role in the global electric vehicle battery supply chain.
IDB Invest, which is the private investment arm of the Inter-American Development Bank, has agreed to lead a financing package worth up to $700 million. This money will go to Posco Argentina, which is part of the South Korean company Posco Holdings. The funds will be used to expand lithium production at its Sal de Oro project.
The project is located in the north-west of Argentina, on the border between the Salta and Catamarca provinces. The financing will include a $250 million loan directly from IDB Invest. Another $450 million is expected to come from other international financial institutions.
This investment is a big step for Argentina. It will help the country process raw lithium into materials that can be used in batteries. This is important because car makers and technology companies around the world are trying to secure supplies of lithium for electric vehicle batteries.
Once the Sal de Oro project is fully running, it is expected to produce around 48,000 tonnes of lithium each year. The project is also set to create about 620 local jobs, which will be a major benefit for the region.
Argentina is part of the so-called ‘Lithium Triangle’ along with Chile and Bolivia, which holds the world’s largest lithium resources.
The financial package will support the start-up and gradual expansion of two Posco Argentina plants. One plant will make lithium hydroxide and the other will make lithium carbonate.
Beyond the loan, IDB Invest will also help the company improve its environmental and social practices. This includes better community engagement, careful management of natural resources, and stronger corporate governance. The goal is to make sure the project grows in a responsible and sustainable way.
