IFC Paves Way for Lithium Mining Revolution in Argentina with a $180M Loan, Reinforcing Clean Energy Transition and Diverse Export Strategy
The International Finance Corporation (IFC) is set to propel Argentina’s lithium mining landscape with a groundbreaking loan of up to $180 million. The financial resources allocated will fortify Allkem, a renowned lithium chemicals company, to develop a lithium mine that could stimulate Argentina’s exports and fortify the worldwide supply chain for batteries and electric vehicles (EVs).
This venture into lithium mining is a first for the IFC, with the organization earmarking up to US$100 million for its own account, an additional US$30 million as part of a mobilization strategy, and a parallel loan of US$50 million. The latter, being orchestrated by the IFC, is anticipated to conclude shortly.
Sal de Vida, a lithium operation nestled within Argentina’s Catamarca province, is destined to contribute substantially to the EV supply chain. An IFC spokesperson emphasized that Sal de Vida’s role involves exporting a product of high value, ready for immediate use within the battery and EV supply chain.
With an anticipated output of 15,000 tonnes of lithium carbonate equivalent annually, the project aims to target the US, European, and Asian markets. This initiative will not only diversify Argentina’s exports but also strengthen regional battery manufacturing capabilities.
IFC’s investment will further facilitate the establishment and operation of a brine lithium plant located in the Salar del Hombre Muerto, a high-altitude salt pan known for abundant lithium resources. This venture stands to stimulate the growth of the lithium extraction and processing market, a sector indispensable to the global push towards clean energy.
Argentina is responsible for 35% of the global lithium resources. Sal de Vida lies within the famed lithium triangle, an area spanning Chile, Bolivia, and Argentina, possessing nearly 60% of the world’s lithium reserves as per the IFC.
IFC’s managing director, Makhtar Diop, hailed the venture, expressing certainty that this loan will reinforce Argentina’s reputation as a global lithium powerhouse while setting high sustainability standards across the lithium mining industry.
This investment is being conducted as a green and sustainability-linked loan, aiming to achieve audacious goals by 2030. These include a boost in women workforce representation to 26% and ramping up renewable energy application in the production cycle to 50%.
Allkem’s managing director and chief executive, Martin Perez de Solay, made a commitment that Sal de Vida will adhere to the highest sustainability standards while fostering Catamarca’s local economy through the creation of jobs, developing local supply chains, and implementing community development programs.
Allkem’s extensive portfolio, spanning lithium brine operations in Argentina, a hard-rock lithium operation in Australia, and a lithium hydroxide conversion facility in Japan, reflects their commitment to sustainable practices and focus on the promising lithium market. This current investment further testifies to Allkem’s vision for the lithium sector’s future.
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