The Project Company, or the Borrower, Galaxy Lithium Sal de Vida S.A., is incorporated in Argentina, and is a wholly-owned subsidiary of Allkem Limited (Allkem), the Sponsor. Allkem is headquartered in Argentina and dually listed on the Australian Securities Exchange (ASX:AKE) and the Toronto Stock Exchange (TSX:AKE). Allkem resulted from the merger of equals between Orocobre Limited and Galaxy Resources Limited in August 2021. Allkem is one of the largest lithium chemical companies by production and market cap, with a ~10% market share.

The Project cost includes a project capex of $271 million, financing related contingencies, owner’s cost, working capital (VAT) and other financing expenses, and will be financed by a combination of debt and equity.

IFC's proposed investment consists of a financing package of up to $200 million that includes an IFC A loan of up to $100 million and mobilization from commercial banks of up to $100 million. The tenor of the IFC A loan will be up to 9 years. Allkem is working with IFC to potentially include sustainability linked features in the financing structure.

The Project is located at an altitude of about 4,000m on the Salar del Hombre Muerto in the province of Catamarca in Argentina. The Project location is remote and sparsely populated, with the nearest village 145km to the South. The main route to the Project site is from the city of Catamarca (approximately 650 km via Antofagasta de la Sierra, unpaved for the last 145 km).

The overall governance risk to the project benefits is classified as low. The Project will generate significant benefits to the economy by generating foreign currency revenues, government revenues, and direct/indirect employment. The Sponsor has agreed to make its payments to the government public, and IFC's assessment indicates that the tax base erosion risk is low. Argentina joined the Extractive Industries Transparency Initiative ("EITI") in 2019 and has achieved a "Moderate" overall score in EITI implementation. Additionally, Galaxy Lithium Sal de Vida follows adequate policies and is implementing a group-wide update of its corporate governance systems following the recent merger. The new framework will support SdV in achieving its high-level vision and strategic goals.