IDB Invest Finances Posco's Lithium Expansion in Argentina with $700M

IDB Invest will extend Posco Argentina a financing line of up to $700 million to expand lithium production at its Sal de Oro project, located in the Salar del Hombre Muerto between the provinces of Salta and Catamarca. Posco Holdings confirmed the transaction on August 28; the funds will provide working capital for its two brine-based lithium plants.

The structure includes a Tranche A of up to $250 million from IDB Invest and a Tranche B of up to $450 million from commercial banks, according to the institution's official project filing. The proceeds will finance the commissioning and gradual ramp-up of two plants: one capable of producing up to 25,000 metric tons per year of lithium hydroxide and another of up to 23,000 metric tons per year of lithium carbonate. At full capacity, the complex will yield approximately 48,000 metric tons per year, according to IDB Invest. The transaction is part of IDB LAC Minerals, the IDB Group initiative that finances the extraction, refining, and processing of critical minerals in Latin America and the Caribbean, with the goal of mobilizing private capital into the supply chains that underpin battery storage and electromobility across the region.

The first phase, a lithium hydroxide plant inaugurated in October 2024 in General Güemes, Salta, is already operational. The second, a lithium carbonate plant, is being commissioned and Posco expects to complete its development in the second half of 2026. That phase, designated Sal de Oro II, was admitted into Argentina's Large Investment Incentive Regime (RIGI); Resolution 1157/2026 from the Ministry of Economy sets computable asset investment at $207.94 million, and its 23,000-metric-ton annual output of lithium carbonate will be directed entirely to export. IDB Invest estimates approximately 620 permanent formal jobs and classifies the transaction under environmental and social category A, reserved for projects with potentially significant impacts.

The next milestone is the commissioning of the lithium carbonate plant, which Posco expects to complete in the second half of 2026, bringing the complex to approximately 48,000 metric tons per year. The progress of Sal de Oro II, with its production earmarked for export, will shape the regional supply of lithium carbonate for the battery supply chain.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.