POSCO Argentina secures a US$700 million short-term credit facility from the IDB Group, reaffirming the competitiveness of its lithium business
A key outcome of public-private cooperation following RIGI approval by the Argentine government and the South Korea–Argentina summit
POSCO group’s resource-focused strategy and lithium supply chain to gain further momentum, supported by POSCO Argentina’s return to profitability in the second quarter
POSCO Holdings has secured a US$700 million (approximately KRW 1 trillion) credit facility from the Inter-American Development Bank Group (IDB Group), an international financial institution, to fund the operations of its Argentina brine lithium business.
On August 4, POSCO Argentina, POSCO Holdings’ Argentine brine lithium production subsidiary, obtained approval from IDB Invest—the private-sector arm of the Inter-American Development Bank Group (IDB Group)—for a short-term credit facility of up to US$700 million.
As part of its strategy to support critical mineral supply chains in Latin America and the Caribbean, the IDB Group provides financing for resource development projects in the region that demonstrate strong performance and competitiveness. In approving the facility for POSCO Argentina’s lithium business, IDB Invest highly recognized the project’s compliance with global ESG standards and its contribution to economic development in Latin America.
The approved facility will allow POSCO Argentina to secure working capital as needed for its first and second brine lithium plants, with the second plant scheduled for completion in the second half of the year. This is expected to further strengthen the subsidiary’s financial stability.
In addition to securing substantial working capital at competitive interest rates, POSCO Argentina is expected to benefit from meaningful tax incentives. Under the intergovernmental agreement establishing the IDB, preferential tax treatment will apply to interest payments and financial transaction taxes incurred in the borrowing process. This is expected to significantly reduce financing costs and enhance the project’s profitability and competitiveness.
POSCO Holdings views the Argentine government’s approval of the Incentive Regime for Large Investments (RIGI), together with IDB Invest’s approval of the large-scale credit facility following the South Korea–Argentina summit held on July 31, as a turning point that has reaffirmed the global competitiveness of its lithium business. The Company also sees this as a leading example of successful public-private cooperation to strengthen critical resource supply chains.
POSCO Holdings’ Argentina lithium business is gaining further momentum through strong financial performance, including POSCO Argentina’s first quarterly profit in the second quarter of 2026; public-private diplomatic efforts with the South Korean government; institutional support from the Argentine government; and access to competitive international financing.
Building on these tangible achievements and competitive strengths, POSCO Holdings will continue to advance POSCO group’s resource-focused “Triple Core” growth strategy. The strategy encompasses industrial resources, including steel; strategic resources, including lithium, cathode and anode materials, rare earth elements and rare gases; and energy resources, including LNG and renewable energy. POSCO Holdings will further strengthen its competitive lithium resource supply chain as a leading supplier of critical resources.
▲ KIM Seung Jun, Head of the Finance & IR Division at POSCO Holdings (right), and James Scriven, CEO of IDB Invest (left), pose for a commemorative photo at the signing ceremony for POSCO Argentina’s credit facility agreement at POSCO Center in Seoul on August 28.