Washington, D.C., July 24, 2023—The International Finance Corporation (IFC), a member of the World Bank, announced a loan of up to US$180 million to Allkem, a world-class lithium chemical producer, to support the development of Sal de Vida, a greenfield lithium operation in the province of Catamarca, Argentina. The financing is IFC's first investment in lithium mining and includes up to US$100 million for IFC's own account and up to US$30 million in mobilization. An additional US$50 million parallel loan arranged by IFC is expected to close subsequently to complete the total financing package.
Lithium is a key input for batteries that power clean energy technologies and plays a critical role in the transition to a low-carbon future. The International Energy Agency estimates that the lithium supply needs to increase sevenfold by 2030 to reach its net-zero emissions scenario by 2050.
The project is expected to produce 15,000 tons per annum of Lithium Carbonate Equivalent (LCE) in its first stage. The investment will support Allkem's construction and operation of a battery-grade brine lithium plant at Sal de Vida which is located at 4,100 meters above sea level in the Salar del Hombre Muerto, Catamarca.
"We are proud to partner with IFC to ensure long-term safe and sustainable operations, responsible products, and thriving communities," said Allkem's Managing Director and CEO, Martin Perez de Solay. "We agreed to set up the highest sustainability standards for Sal de Vida, so that it will contribute to the economy of Catamarca via local employment, the development of local supply chains, and community development programs."
This is the first time a greenfield mining project's financing has been structured as a green and sustainability-linked loan. The project's ambitious sustainability targets include increasing the percentage of women in Sal de Vida's workforce from 10 percent in 2022 to 26 percent by 2030 and expanding the use of renewable energy in the production cycle to 50 percent by 2030.
"Our investment in Allkem is part of IFC's strategy to develop global supply chains that accelerate the transition to a low-carbon future while creating jobs," said Makhtar Diop, IFC's Managing Director. "It will strengthen Argentina's position as one of the world's leading lithium producers and help set high sustainability standards for the lithium mining industry."
Sal de Vida is located within the Lithium Triangle, a region in the Andes straddling the borders of Chile, Bolivia, and Argentina, that hosts roughly 60 percent of the world's identified lithium metal resources in near‐surface brines. Argentina alone accounts for 35 percent of the global lithium resources and ranks third globally in proven reserves.
About IFC
IFC — a member of the World Bank — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record US$32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About Allkem
Allkem is a speciality lithium chemicals company with a global portfolio of diverse & high-quality lithium chemicals. Our unique portfolio includes lithium brine operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan. New project developments are underway across the globe to enhance international scale and product flexibility to meet significant market growth that is underpinned by a global transition to a net zero carbon future. Our pillars of success are built on sustainability, cost leadership and product quality through relations with our people, partners, customers and communities. It is dual listed on the Australian Securities Exchange and Toronto Stock Exchange. For more information, visit https://www.allkem.co/.
