Ghana is set to join the global electric vehicle (EV) supply chain with a new investment in its lithium mining sector. The country’s Mineral Incomes Investment Fund (MIIF), a state-owned entity that manages the revenues from the mining industry, has announced its intention to invest $32.9 million in Atlantic Lithium, a company that is developing a lithium mine in the Central Region of Ghana. Lithium is a key component of EV batteries, and the demand for the metal is expected to grow exponentially as more countries adopt cleaner and greener transportation systems. According to a report by BloombergNEF, the global lithium-ion battery market will reach $116 billion by 2030, up from $36 billion in 2019.
Atlantic Lithium is currently advancing its flagship Ewoyaa project, which has an estimated resource of 14.5 million tonnes of lithium oxide. The company aims to start production by 2024 and export spodumene concentrate, a raw material for lithium extraction, to international markets. The company also has exploration assets in Côte d’Ivoire, another West African country with lithium potential.
The MIIF’s investment will give it a 6% stake in Atlantic Lithium’s interests in Ghana, including the Ewoyaa project and the broader Cape Coast lithium portfolio. The MIIF will also have a seat on the board of each of the company’s Ghanaian subsidiaries, and a right to participate in the off-take agreements for Ewoyaa’s output. The investment will also support the development and exploration activities of Atlantic Lithium in Ghana.
The MIIF and Atlantic Lithium have hailed the investment as a strategic partnership that will benefit both parties and the Ghanaian economy. The MIIF’s CEO Edward Nana Yaw Koranteng said that the investment will enhance and accelerate Ghana’s efforts as an African critical minerals hub and establish the country’s position in the global EV supply chain. Atlantic Lithium’s Executive Chairman Neil Herbert said that the investment will significantly de-risk the success of the project and align the company with the best interests of its Ghanaian stakeholders.
Ghana is not the only African country that is eyeing the lithium opportunity. Zimbabwe, Namibia, Mali, and Nigeria are among the other countries that have identified lithium deposits and are seeking to attract investors and developers. Africa has an estimated 5% of the world’s lithium resources, but accounts for less than 1% of global production.
The development of lithium mining in Africa could have positive impacts on the continent’s economic diversification, industrialization, and environmental sustainability. It could also create jobs, generate revenues, and foster innovation and technology transfer. However, there are also challenges and risks involved, such as ensuring environmental and social standards, securing infrastructure and power supply, and managing geopolitical and market uncertainties.
Source: News Ghana
