Accra, Ghana – Ghana’s hopes for its first lithium mine could be dashed by a global slump in lithium prices, according to the head of the country’s mining sector regulator.
In October 2023, Ghana, a major West African producer of gold and cocoa, granted a 15-year lease to Australian miner Atlantic Lithium for the development of the Ewoyaa Project, the nation’s first lithium mine. While the project received environmental approval on Thursday, delays in securing parliamentary ratification for the lease are causing concerns.
Martin Ayisi, head of Ghana’s Minerals Commission, expressed his worries that the project, aiming for an annual production of 360,000 tons of lithium, could be stalled. He cited the rising production costs and falling lithium prices as key concerns.
“With production costs estimated around $650 per ton and the current price just above $700, the situation is worrying,” Ayisi said. He added that a continued price decline could force a further delay, similar to other lithium projects around the world.
The global price of lithium, a critical component in electric vehicle batteries, has plummeted over the past two years due to increased supply and weaker-than-expected demand for electric vehicles. As alternative materials for battery production emerge, Ayisi emphasized the urgency for the Ewoyaa Project.
“This isn’t just about the price; it’s about mining the lithium when it’s commercially viable,” he explained.
Ahmed-Salim Adam, Atlantic Lithium’s general manager, confirmed the project’s construction has been pushed back to the first quarter of 2025 due to the missing parliamentary ratification. Originally planned for July 2024, the delay stems from lawmakers’ request for broader public consultation to avoid repeating past mistakes made during gold mining project approvals.
