Allkem Successfully Raises $180 million in Funding for its Lithium Project in Argentina

Argentina: The Sal de Vida Project's first stage of development will be able to produce 15,000 tonnes of Lithium carbonate annually.

A financing of up to $180 million (48.78 billion pesos) has been secured by Lithium chemical company Allkem for the construction of the battery-grade Brine Lithium plant at the Sal de Vida location in Argentina. A ten-year loan for up to $130 million has been accepted by the World Bank member International Finance Corporation (IFC). This includes up to a $100 million A loan and a $30 million B loan.

The IFC-arranged parallel loan for an additional $50 million is scheduled to be closed by Allkem, increasing the total funding to $180 million. The manufacturer of Lithium chemicals has established the project financing facility as a "green and sustainability-linked loan.

A sustainability-linked green loan combines challenging environmental and social goals, according to a statement from Allkem. For a more environmentally friendly future and regional economic expansion in the province of Catamarca, these objectives and commitments promote Allkem's responsible and sustainable development of Lithium.

The project's lofty sustainability goals include reaching a 50% use of renewable resources in its production cycle by 2030. IFC Managing Director Makhtar Diop stated that the investment in Allkem aligns with their strategy to foster global supply chains that drive the shift towards a low-carbon future and generate employment opportunities.

It will help raise the bar for sustainability in the Lithium mining sector and solidify Argentina's position as one of the top producers of Lithium in the world.

Around 60% of the world's identified Lithium metal deposits are found in Brines at the Sal de Vida project, which is situated in the Lithium Triangle, an area of the Andes that is on the borders of Chile, Bolivia, and Argentina.

Allkem will use the funding to complete stage one of the Sal de Vida Project, which will have an annual production capacity of 15,000 tonnes of Lithium Carbonate equivalent.

Martin Perez de Solay, managing director and CEO of Allkem, stated: committed to the highest sustainability standards for Sal de Vida so that it can support the Catamarca economy through local employment, the growth of local supply chains, and community development programs.

Sal de Vida is a project that competes on a worldwide scale, and its superior Brine chemistry easily upgrades to Lithium carbonate suitable for batteries. Sal de Vida is one of the world's highest-quality Brines according to its estimated 6.85 million tonnes of Lithium carbonate equivalent (LCE) and average grade of 752 ppm Li. The 1.74 million tonnes of LCE in the Reserve estimate support a 40-year project life.

The deposit is in the "Lithium triangle," an area that includes Chile, Bolivia, and Argentina and is home to a sizeable fraction of the projected global Lithium resources. It is located at an elevation of more than 4,000 meters above sea level.

The Salar del Hombre Muerto site will be used for an evaporation and processing operation that will generate mostly Lithium carbonate of the battery grade.

The process development team made a technical advancement that led to the introduction of battery grade as a final product. The straightforward flowsheet was created internally and makes use of established technology. It uses little water and energy.

With an extra 30ktpa from Stage 2, the initial output objective of 15,000tpa in Stage 1 is easily expandable to a 45,000tpa Brine operation. Excellent Brine extraction and aquifer recharge rates have been shown by long-term hydrological pump testing under operating conditions, supporting the production design basis.