Ghana is facing concerns that a steep drop in global lithium prices could jeopardize its first-ever lithium mining project in the town of Ewoyaa, according to the head of the country’s mining regulator.
In an interview with Reuters, Martin Ayisi, head of the Minerals Commission, said that the price slump threatens the viability of the Atlantic Lithium project, which was initially slated to begin production by the end of 2024.
In October 2023, Ghana granted Australia-based Atlantic Lithium a 15-year lease to develop the mine, marking a significant step for the West African nation, traditionally known for its gold and cocoa exports.
The company received environmental approval for the project on Thursday but is facing delays in parliamentary ratification, which is hindering progress on the construction timeline and pricing outlook.
Ayisi said the project, which aims to produce 360,000 tons of lithium annually, could be stalled if the current market downturn persists. “It will cost Atlantic Lithium around $650 to produce a ton of lithium concentrate, and with prices hovering just above $700, it’s a cause for concern,” Ayisi stated.
He warned that if lithium prices continue to fall, the project might experience further delays, similar to other lithium ventures globally.
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Lithium, a critical component in electric vehicle (EV) batteries, has seen its prices plummet over the past two years due to an oversupply and weaker-than-expected demand for EVs. As alternatives to lithium emerge in the EV and battery sectors, Ayisi stressed that timing is crucial for the Ewoyaa Project to succeed.
“It’s not just a race against falling prices; it’s a race to mine while lithium is still commercially essential,” he said.
Atlantic Lithium’s General Manager, Ahmed-Salim Adam, confirmed that the project, initially set to begin construction in July, has been postponed to the first quarter of 2025 due to the delayed parliamentary ratification.
Lawmakers have sought more consultation on the project to avoid missteps similar to those made with previous gold mining approvals.
Adam added that beyond ratification, the company also requires an operating permit from the Minerals Commission, a process that could take up to 22 months.
“It’s critical that we secure ratification quickly, or we risk losing investor confidence, especially as regions like the lithium triangle and Mali offer more attractive opportunities,” Adam warned.
