In their first foray into the lithium space, the International Finance Corporations (IFC) announced a US$180M loan facility will be made available to Allkem to assist in developing the Sal de Vida project in Argentina.

The IFC is a development finance institution comprised and funded by its member states. The loan is comprised of up to US$100M from the IFC’s own account, US$30M in mobilisation, and a subsequent parallel loan package arranged by the IFC.  Furthermore, the loan agreement is tied to a number of sustainability targets which Allkem has committed to achieving.  Firstly, Allkem has committed to increasing the percentage of women in the Sal de Vida workforce from 10% in 2022 to 26% by 2030.  Allkem has also committed to increasing the use of renewable energy in the production cycle to 50% by 2030.   

Allkem’s Sal de Vida project is under construction as of July 2023, with first production expected by the end of the year. The project is scheduled to produce both technical- and battery-grade lithium carbonate, with average production expected to total roughly 45ktpy LCE after a 4-year ramp-up period.  Current expectations are for the project to have a 42-year life of mine. 

As one of the more advanced lithium brine operations in Argentina, the Sal de Vida project is expected to be the first newly commissioned large-scale brine operation in South America since the Salar de Olaroz in 2015.  The success of the Sal de Vida project will likely raise confidence in the capability of new Argentine lithium brine projects to reach production and help meet the rapid growth in lithium demand expected over the coming decade.