Posco Secures $700M for Argentina Lithium Expansion, Boosting Global EV Battery Supply

Posco Holdings has secured a significant $700 million liquidity facility from IDB Invest, the private sector arm of the Inter-American Development Bank, to supercharge its lithium production expansion in Argentina. This crucial financing, which includes a direct loan of up to $250 million from IDB Invest and an additional $450 million expected from other international financial institutions, directly targets Posco's Sal de Oro project, aiming to boost the global supply of battery-grade lithium. This move comes at a critical time when global demand for lithium, a key 'critical mineral' for electric vehicle (EV) batteries and energy storage systems (ESS), is skyrocketing, with a market deficit forecast to emerge in 2026. Argentina, strategically located within the 'Lithium Triangle' – a region rich in lithium resources – is rapidly emerging as a central player in this global race. Posco's project has also received a major boost from the Argentine government through its Incentive Regime for Large Investments (RIGI), offering attractive fiscal and tax benefits, and Posco Argentina even reported its first quarterly profit in Q2 2026. With this new funding, Posco is set to complete its second lithium plant (lithium carbonate) at the Sal de Oro project by October 2026, which will work alongside its existing lithium hydroxide plant. Once both phases are fully up and running, the project is expected to churn out around 48,000-50,000 metric tons of lithium annually, with ambitions to reach 100,000 metric tons in the future. This expansion is vital for securing the supply chain for advanced batteries and positioning Argentina as a powerhouse in the global transition to clean energy.