By Toma Imirhe
Atlantic Lithium’s Ewoyaa Lithium Project is now awaiting Parliamentary approval to start construction of Ghana’s first lithium mine, but a recent sharp decline in global market prices for spodumene – the main source of lithium – is forcing the company to seek a renegotiation of the terms of the mining lease granted by the Government of Ghana.
Atlantic Lithium secured the final major regulatory approval—the Mine Operating Permit—from Ghana’s Minerals Commission in October 2024, marking a critical step toward construction . The permit validated the project’s technical and environmental plans, paving the way for a Final Investment Decision (FID). However, the company still awaits parliamentary ratification of its 15-year Mining Lease, which was delayed due to legislative recess and ongoing negotiations
Initially targeting a late-2024 construction start, Atlantic Lithium now expects to break ground by mid-2025, with production potentially commencing in late 2026 or early 2027. The revised timeline accounts for delays in lease ratification and funding reassessments amid market volatility.
The latter problem has arisen because the project’s viability has been jeopardized by an 80% drop in lithium prices since their 2022 peak, from over US$6,000 per tonne to about US$800 currently, driven by oversupply and slower-than-expected Electric Vehicle adoption . Atlantic Lithium’s internal rate of return (IRR) has plummeted from 105% to just 13.6%, rendering the project borderline unprofitable under current fiscal terms
In response, the company is seeking concessions from the Ghanaian government, including reduced royalty rates (from 13% to 5%, aligning with gold sector rates); a sliding-scale royalty tied to lithium prices; and tax relief, including waivers on import duties for capital equipment.
Government has not made a public statement on its response yet.
Despite this, Atlantic’s CEO Neil Herbert remains optimistic, saying: “We look forward to securing ratification in line with due parliamentary process, together with additional fiscal assistance from the government, which represents a key milestone on the Company’s path to achieving first production of lithium in Ghana.”
Atlantic has also upgraded its estimate for feldspar resources at Ewoyaa to 36.8 million tonnes, underlining the site’s potential to deliver valuable by-products alongside spodumene concentrate, the main source of lithium. Feldspar is commonly used in ceramics and glass manufacturing, offering an extra commercial stream for the project.
Despite market headwinds, Atlantic Lithium has secured key financial backing. Piedmont Lithium, its second-largest shareholder (22.5% stake), has committed to funding 70% of the US$185 million development costs . A US$10 million share placement in late 2024, led by Assore International Holdings, bolstered pre-construction reserves Also, a proposed merger between Piedmont and Sayona Mining could further stabilize funding by expanding access to North American and Australian markets.
The company is also engaging with development finance institutions and project finance banks to secure additional capital
Ewoyaa is strategically positioned to supply spodumene concentrate to the U.S. and global EV markets, with an estimated annual output of 350,000 tonnes over 12 years . A key advantage is its by-product potential, including feldspar for Ghana’s ceramics industry, which could reduce operating costs by 15–20%.
Atlantic’s executives have stressed the importance of the Ewoyaa project’s low operating costs in ensuring resilience, even at suppressed pricing levels and noted that Ewoyaa could bring over 900 direct and up to 2,500 indirect jobs to Ghana’s Central Region, making it a catalyst for regional economic development.
However, the company has already laid off 25 employees in October 2024, with another 50 job cuts expected by May 2025, reflecting financial strain.
Ghana views the project as a gateway to diversifying its mining sector beyond gold, with potential annual revenues of US$15–20 million for the government .
Atlantic Lithium holds 560 square kilometres of tenure in Ghana comprising significantly under-explored, highly prospective licenses.
