IDB to Mobilize US$700 Million to Expand POSCO Project in Salta

POSCO Argentina secured new financial backing to expand Sal de Oro, its lithium project located in Salar del Hombre Muerto, a deposit shared by Salta and Catamarca. BID Invest announced an operation of up to US$700 million to finance the development, startup, and gradual increase in production.

The scheme includes a direct loan of up to US$250 million from BID Invest, while another US$450 million would be mobilized among financial institutions. The resources will support the expansion of the complex and its processing facilities.

Sal de Oro is expected to produce annually up to 25,000 tonnes of lithium hydroxide and 23,000 tonnes of lithium carbonate. If both capacities are achieved, the plants could reach a combined output of approximately 48,000 tonnes per year of lithium-derived products.

POSCO already operates a lithium hydroxide plant in General Güemes, Salta. That facility incorporates chemical processing of brine production from the Puna and is part of a strategy aimed at integrating different stages of the value chain to supply battery-related markets.

The announcement comes after Sal de Oro II's incorporation into the Large Investment Incentive Regime (RIGI), under which the lithium carbonate plant is planned to be built. The minimum computable investment for that project was set at US$207.94 million.

BID Invest categorized the operation as environmental and social level A, due to the possibility of generating significant impacts. Additionally, it placed the financing within its strategy to strengthen regional critical mineral supply chains.

With information from Panorama Minero.