ACCRA, Mar 20 – Atlantic Lithium Ltd. has received approval to move ahead with the development of Ghana’s first lithium mine, following the adoption of revised fiscal terms that are more favourable than earlier proposals.
Under the agreement, the company’s local subsidiary will pay royalties based on a sliding scale linked to the market price of spodumene, the lithium-bearing mineral. Rates will range from 5% when prices fall below $1,500 per ton to 12% when they exceed $3,200, according to the lease ratified by parliament.
This replaces the previously proposed flat 10% royalty, which had been a sticking point in negotiations that delayed the project for more than two years. The adjustment comes after lithium prices declined from their 2022 peak, prompting the company to seek more flexible terms. A broader overhaul of Ghana’s royalty framework for lithium and gold helped unlock the agreement.
The Ewoyaa project is set to become a strategic asset, positioning Ghana within the global lithium supply chain. It is expected to produce around 3.6 million tons of spodumene concentrate over a 12-year period, making it one of the largest lithium developments currently underway on the continent.
Notably, the project is expected to supply the United States market, distinguishing it from many other African lithium ventures that are largely backed by Chinese investment.
A portion of the mine’s output is already committed through offtake agreements linked to Elevra Lithium, an entity formed from the merger of Piedmont Lithium and Sayona Mining. These agreements are connected to major battery supply chains, including partnerships with companies such as Tesla Inc. and LG Chem.
With parliamentary approval secured, Atlantic Lithium is now expected to advance discussions on project financing and move closer to a final investment decision.
The development comes at a time of intensifying global competition for critical minerals. While Chinese firms have expanded their footprint across Africa’s lithium sector, the United States has increasingly focused on securing alternative supply sources to reduce reliance on Beijing-dominated value chains.
