Shearman And Sterling

News August 02, 2023

Allkem Sal de Vida Lithium Project Loan

Shearman & Sterling advised Allkem and its affiliates in connection with the up to US$130 million (with the potential to increase to up to US$180 million) limited recourse project financing provided by the International Finance Corporation (IFC) to support the development and construction of the first stage of Allkem’s Sal de Vida lithium project located in Catamarca, Argentina. The financing is IFC's first investment in lithium mining and is the first time a greenfield mining project's financing has been structured as a green and sustainability-linked loan.

Sal de Vida, located within the “Lithium Triangle”, is a greenfield lithium battery-grade brine project and in its first stage is expected to produce 15,000 tons per annum of Lithium Carbonate Equivalent (LCE).

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.

Allkem is a speciality lithium chemicals company with a global portfolio of diverse & high-quality lithium chemicals. Their portfolio includes lithium brine operations in Argentina, a hard-rock lithium operation in Australia and a lithium hydroxide conversion facility in Japan.

The Team