POSCO Holdings finance and investor relations chief Kim Seung-jun, right, and IDB Invest Chief Executive James Scriven attend a signing ceremony Friday at the POSCO Center in Seoul. Photo courtesy of POSCO Holdings \n <\/p>\n
Aug. 28 (Asia Today) — POSCO Holdings has secured a $700 million credit facility to support its brine lithium operations in Argentina, strengthening the financial foundation of its overseas critical-minerals business.<\/p>\n
The South Korean company said Friday that POSCO Argentina, its local brine lithium production subsidiary, received approval Aug. 4 for a short-term credit facility of up to $700 million from IDB Invest, the private-sector arm of the Inter-American Development Bank Group.\n<\/p>\n
The financing will allow POSCO Argentina to secure working capital as needed for its first brine lithium plant and a second plant scheduled for completion in the second half of this year.<\/p>\n
The Inter-American Development Bank Group provides financing for commercially viable resource development projects as part of its effort to strengthen critical-mineral supply chains in Latin America.<\/p>\n
POSCO said the review of its project found that the Argentina lithium operations met global environmental, social and governance standards and contributed to regional economic development.<\/p>\n
The company also expects to reduce financing costs through tax benefits available under the international agreement establishing the development bank. Those benefits are expected to apply to interest payments and financial transaction taxes associated with borrowing.<\/p>\n
POSCO Argentina began commercial production at its local facility in October 2024 and posted its first quarterly profit in the second quarter of this year.\n<\/p>\n
POSCO Holdings said cooperation between the South Korean government and private sector, support from the Argentine government and access to international financing have helped accelerate the project.<\/p>\n
The company plans to continue pursuing what it calls its “triple-core” growth strategy centered on industrial resources such as steel, strategic resources including lithium, cathode and anode materials, rare earth elements and rare gases, and energy resources including liquefied natural gas and renewable energy.<\/p>\n
POSCO also plans to continue expanding its critical-resource supply chain, including lithium.<\/p>\n
— Reported by Asia Today; translated by UPI<\/p>\n
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