KB News Desk
Posco Holdings said Friday it had secured an 1 trillion won ($728 million) line of credit from the Inter-American Development Bank Group (IDB Group) for its Argentina lithium project, advancing its effort to build a China-free critical mineral supply chain.
Posco Argentina — the company’s local lithium production subsidiary — received approval for a short-term credit facility from IDB Invest, the private sector arm of the IDB Group. Posco Holdings highlighted that IDB Invest highly acknowledged the Argentine unit for meeting global ESG standards and contributing directly to regional economic growth.
The approved facility strengthens Posco Argentina’s financial stability, providing flexible working capital for brine lithium plants 1 and 2, which are scheduled for completion in the second half of this year.
The agreement significantly lowers the firm’s financing costs. Under the IDB intergovernmental agreement, Posco Argentina benefits from tax exemptions on interest and transaction fees, securing tax-favorable, low-cost capital that will drive the project’s overall profitability.
With Posco Argentina turning its first quarterly profit in the second quarter this year, the company said the subsidiary is well-positioned to push forward its lithium expansion, backed by solid financial backing.
Capitalizing on this momentum, Posco Holdings plans to reinforce its group-wide “Triple-core” growth strategy — focused on industrial resources like steel, strategic resources — lithium, battery materials, rare earths and rare gases — and energy resources such as LNG and renewable energy to solidify its foothold as a major resource supplier.
