Metals & Mining, LNG, Energy Transition, Non-Ferrous, Renewables
August 28, 2026
POSCO eyes swift development of Argentina lithium business with $700 mil loan
By Clement Choo
Editor:
HIGHLIGHTS
IDB Invest approves $700 mil credit facility
Second plant produces 23,000 mt/y lithium carbonate
Four-phase project targets 100,000 mt/y by 2033
South Korea's POSCO Holdings hopes to accelerate the development of its brine lithium project in Argentina after securing a $700 million loan to support it, the company said in a statement on Aug. 28.
It said that POSCO Argentina SAU, its brine lithium production subsidiary, received approval on Aug. 4 for the short-term loan line from IDB Invest, the private investment agency of the Inter-American Development Bank Group.
"With the approval of this borrowing limit, POSCO Argentina is expected to further strengthen the company's financial stability by enabling it to stably secure working capital for its lithium brine plant 1 and plant 2 (scheduled for completion in the second half of the year) whenever needed," it said.
POSCO Argentina is developing the brine lithium production project at the Salar del Hombre Muerto salt lake in Argentina with a production capacity of 100,000 metric tons/year across four phases.
A first-phase 25,000 mt/year lithium hydroxide plant is operating, with a second-phase plant for 23,000 mt/year of lithium carbonate to follow.
Phases 3 and 4 are scheduled for completion in 2030 and 2033, respectively, data from the POSCO Group showed.
"This investment will support the development, start-up, and gradual ramp-up of production at Sal de Oro project, located in the Salar del Hombre Muerto, in the provinces of Salta and Catamarca, Argentina," IDB Invest said, adding the initiative includes plants 1 and 2.
By obtaining the loan, "POSCO Argentina will be able to enjoy not only large-scale working capital at low interest rates but also practical tax benefits," POSCO Holdings said.
The group's lithium business has been slated as one of its three key growth sectors, namely industrial (steel), strategic (lithium, rare earths, etc) and energy resources (LNG, renewable energy, etc).
Also, the lithium business will support plans by Argentina and South Korea to develop a supply chain for critical minerals, following the signing of a memorandum of understanding on July 31, 2026.
Platts, part of S&P Global Energy, assessed battery-grade lithium hydroxide at $19,800/mt CIF North Asia and lithium carbonate at $19,500/mt CIF North Asia on Aug. 27, both down $100/mt from Aug. 26.
