South Korea’s Posco Holdings has secured a credit line of 1 trillion won, or $728 million, from the Inter-American Development Bank Group for a lithium project in Argentina. The short-term financing for local production subsidiary Posco Argentina was approved by IDB Invest, the group’s private-sector arm.
Funds for lithium plants
As The Korea Herald reports, the credit line is intended to strengthen Posco Argentina’s financial stability and provide flexible working capital for two lithium-from-brine production plants. Construction of both facilities is planned to be completed in the second half of 2026.
Posco Holdings said that IDB Invest highly rated the Argentine subsidiary’s compliance with global ESG standards and its contribution to the region’s economic growth. The company also reported that Posco Argentina posted a quarterly profit for the first time in the second quarter of 2026.
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Tax terms of the financing
Under an intergovernmental agreement, IDB Posco Argentina is exempt from taxes on interest and transaction fees. According to the company’s estimate, this will reduce financing costs and support the project’s overall profitability.
Posco Holdings views the Argentine project as part of its efforts to build a supply chain for critical minerals without China’s involvement. The group also plans to strengthen its strategy in “three key areas”: industrial resources, including steel; strategic resources, including lithium, battery materials, rare-earth elements and rare gases; and energy resources, including liquefied natural gas and renewable energy.
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