POSCO Holdings has secured a credit facility of up to US$700 million, equivalent to about KRW 1 trillion, from IDB Invest, the private-sector arm of the Inter-American Development Bank Group, to support its lithium operations in Argentina. POSCO Argentina, the company’s Argentine brine lithium production subsidiary, received approval for the short-term credit facility on August 4. The financing will provide working capital for the company’s first and second brine lithium plants.
The second plant is scheduled for completion in the second half of 2026. The new financing is expected to strengthen POSCO Argentina’s financial position as production capacity expands. The Inter-American Development Bank Group provides financing for private-sector projects in Latin America and the Caribbean, with a focus on areas including critical mineral supply chains. IDB Invest highlighted the Argentine lithium project’s compliance with international environmental, social and governance standards and its contribution to economic development in the region.
The credit facility will give POSCO Argentina access to working capital at competitive financing rates. The company is also expected to benefit from tax incentives related to the financing. Under the intergovernmental agreement establishing the IDB, preferential tax treatment will apply to certain interest payments and financial transaction taxes associated with the borrowing. POSCO Holdings expects these benefits to reduce financing costs and improve the competitiveness of its lithium operations.
The financing comes after the Argentine government approved the Incentive Regime for Large Investments, known as RIGI, for major investment projects. POSCO Holdings said the combination of the investment regime and international financing strengthens the outlook for its Argentine lithium business.
The company also pointed to growing cooperation between South Korea and Argentina following the South Korea-Argentina summit held on July 31. POSCO Argentina’s business has shown improvement, reporting its first quarterly profit in the second quarter of 2026. The company said the financial performance, government support and access to international financing are helping accelerate development of its lithium operations. The Argentine project forms part of POSCO Holdings’ broader strategy to strengthen its position in critical minerals. Lithium is a key raw material for rechargeable batteries used in electric vehicles and energy storage systems.
POSCO Holdings plans to continue expanding its lithium resource supply chain as part of the POSCO Group’s “Triple Core” growth strategy. The strategy covers industrial resources such as steel, strategic resources including lithium, cathode and anode materials, rare earth elements and rare gases, and energy resources such as LNG and renewable energy.
