POSCO Holdings secures major financing facility to accelerate lithium operations in Argentina

POSCO Holdings has secured a significant financing facility to support the development of its lithium operations in Argentina, reinforcing its position in the global supply chain for critical battery materials and enabling faster project advancement.

POSCO Argentina, the company’s local brine lithium production subsidiary, obtained approval for a short-term borrowing facility of up to $700 million (approximately 1 trillion won) from IDB Invest, the private-sector arm of the Inter-American Development Bank Group (IDB Group).

This financing supports the IDB Group’s strategy to strengthen critical mineral supply chains in Latin America by funding commercially viable resource development projects. It would also promote regional economic growth.

In evaluating the POSCO Argentina lithium project, the IDB Group recognised its adherence to global environmental, social, and governance (ESG) standards, as well as its potential to drive economic development in Latin America.

Impact on Project development and financial stability

POSCO Argentina has approved a credit facility to fund working capital for its first brine lithium plant and a second plant set to be completed in late 2026. 

This support aims to improve financial stability and reduce uncertainties as the company increases its lithium production capacity.

POSCO Argentina is also anticipated to benefit from lower financing costs. Access to large-scale working capital at favourable interest rates, coupled with preferential tax treatment under agreements governing the IDB’s operations, is expected to reduce overall financing expenses. Tax benefits covering interest payments and financial transaction taxes will improve the profitability and competitiveness of the lithium project.

Strengthening public-private cooperation and investment incentives

The financing coincides with strengthened cooperation between POSCO Holdings and the Argentine government regarding the company’s strategic investment in the country. 

After the Korea-Argentina summit in July, POSCO received approval under Argentina’s Large Investment Incentive Regime (RIGI). 

This approval, along with IDB Group financing, boosts support for their lithium operations.

POSCO Holdings sees these developments as a key milestone for its lithium business and as a successful example of public-private collaboration to secure important resources.

Financial performance and strategic outlook

POSCO Argentina achieved its first quarterly profit in Q2 2026, indicating better financial performance. 

With institutional support and access to international financing, project progress is expected to accelerate.

Lithium is crucial for batteries in electric vehicles and energy storage systems. 

As demand for electric power and renewable energy increases, it is important to secure a steady supply of lithium for industries and battery manufacturers.

POSCO Group views lithium as a key resource for its growth and is investing to build a competitive supply chain that includes raw materials and battery components.

Advancing the “triple-core” growth strategy

Building on progress in Argentina, POSCO Holdings plans to advance its resource-focused “Triple-Core” growth strategy, which centres on three key areas i) industrial resources led by steel ii) strategic resources, including lithium, cathode and anode materials, rare earth elements, and rare gases iii) energy resources such as liquefied natural gas and renewable energy.

The company aims to boost productivity and financial stability in its Argentine lithium operations while strengthening its position in the global critical mineral supply chain. 

POSCO Holdings intends to create a more competitive lithium supply network and solidify its role as a key supplier of strategic resources.