Australia-based Atlantic Lithium Limited through its Barari DV Ghana company has been granted a 15-year lease by Ghana’s Ministry of Lands and Natural Resources to begin developing a lithium mine spanning a 42.6-kilometer area in the Central Region of Ghana, at the Ewoyaa site.
This new development is in line with Ghana’s strategy to capitalize on the worldwide transition to electric vehicles, thus positioning itself as an active participant in the growing electric vehicle industry.
Ghanaian Ministry stated on its website that this development follows nearly six years of exploration activities, successfully identifying commercial-grade lithium reserves.
The West African state has made several adjustments, including increasing the royalty rate from the standard 5% to 10% and the state’s interest in the project from 10% to 13%, as confirmed by the ministry’s statement. The company shall also pay 1% of its revenue into a community development fund.
The country’s Minerals Income Investment Fund will secure an additional 6% stake in the mining operation and a 3.06% share in Atlantic Lithium. The company would also be required to list on the Ghana Stock Exchange.
Presently, the global shift from fossil fuels to electric vehicles is fueling intense competition for securing lithium resources worldwide.
With a projected shortage anticipated to begin in 2025, there is an urgency to identify and secure new lithium supplies to meet the increasing demand for batteries in electric vehicles and renewable energy storage.
50% of the lithium extracted from the Ewoyaa mine is designated for a processing facility operated by Piedmont Lithium Ltd., the second-largest shareholder in Atlantic Lithium Ltd based in North Carolina.
Atlantic Lithium aims to produce an annual average of 300,000 tons of spodumene concentrate over 12 years at the Ewoyaa site.
If Ghana realizes this production rate would position it as the world’s 10th-largest lithium project, as per the company’s estimates.