IFC Backs $2.5B Argentina Lithium Project to Power EV Supply

IFC will provide a direct loan of $400 million as part of a broader $1.175 billion financing package.

The International Finance Corporation (IFC), a member of the World Bank Group, has partnered with global mining company Rio Tinto to advance the Rincón Lithium Project in Argentina’s Salta province, a major investment expected to strengthen global supply chains for electric vehicle batteries while boosting local economic development.

The large-scale greenfield lithium development represents a total investment of $2.5 billion, aimed at expanding Argentina’s role as one of the world’s key producers of lithium—an essential mineral for the global energy transition.

Major Financing Package Led by IFC

IFC will provide a direct loan of $400 million as part of a broader $1.175 billion financing package.

In addition to its own investment, IFC helped mobilize $775 million from parallel lenders, including:

• IDB Invest, the private-sector arm of the Inter-American Development Bank Group

• Japan Bank for International Cooperation (JBIC)

• Export Finance Australia

The collaboration demonstrates how international financial institutions and private investors can combine resources to support large-scale clean energy supply chain projects in emerging markets.

“This investment reflects IFC’s commitment to supporting Argentina’s development through sustainable private sector solutions in partnership with global leaders like Rio Tinto,” said Makhtar Diop, Managing Director of IFC.

“With strong international co-financing, we are demonstrating how private capital can accelerate the energy transition while delivering lasting economic benefits across emerging markets.”

Boosting Global Lithium Supply

Once fully operational, the Rincón Lithium Project is expected to produce approximately 53,000 tonnes of battery-grade lithium carbonate annually.

Following planned optimization efforts, production could increase to around 60,000 tonnes per year over the project’s 40-year operational life.

That output is estimated to be sufficient to power more than one million electric vehicles each year, highlighting the project’s importance for the rapidly growing EV industry.

Economic Opportunities for Argentina

Beyond its global significance, the project is expected to generate substantial local economic benefits.

The development will create jobs across the entire mineral value chain, including:

• Construction and mine development

• Mining operations

• Lithium processing

• Local procurement and supply chains

Training investments will also help prepare local workers for long-term employment in the mining and processing sectors, supporting economic diversification in the province of Salta, a region rich in mineral resources.

Supporting Responsible Mineral Development

The project aligns with the World Bank Group’s Metals and Minerals Strategy, which aims to help resource-rich countries capture greater economic value from their mineral resources through local processing and job creation.

It also emphasizes responsible mining practices, with commitments to robust environmental and social standards.

These safeguards are intended to position the Rincón project as a model for sustainable lithium production in a sector that is rapidly expanding as demand for clean energy technologies increases.

Strengthening the Global Energy Transition

Lithium is a critical component in lithium-ion batteries used in electric vehicles, renewable energy storage systems and consumer electronics.

With demand for EVs and clean energy technologies surging worldwide, projects like Rincón are increasingly important to ensure stable supply chains for critical minerals.

By combining international financing, advanced mining expertise and strong environmental standards, the Rincón Lithium Project aims to help Argentina consolidate its position as a global leader in responsible lithium production while supporting the broader transition to low-carbon energy systems.