IDB Invest, the private-sector arm of the Inter-American Development Bank, will lead a financing package of up to $700-million for South Korea's Posco Holdings to expand lithium production at its Sal de Oro project in Argentina.

The project is located in northwest Argentina on the border of Salta and Catamarca provinces. Once fully operational, it is expected to produce approximately 48,000 tonnes of lithium annually and create around 620 jobs, according to an IDB Invest statement released Friday.

The financing package includes a direct loan of up to $250-million from IDB Invest, with an additional $450-million expected from other international financial institutions.

The funding will support the startup and phased expansion of two Posco Argentina plants — one producing lithium hydroxide and the other lithium carbonate — aimed at expanding the country's capacity to process lithium into battery materials.

The financing comes as automakers and technology companies compete to secure lithium supplies for electric-vehicle batteries, a critical raw material in the global energy transition. Argentina, Chile and Bolivia form the so-called Lithium Triangle, which holds the world's largest lithium resources.