The Government of Ghana has signalled a sign of hope for actualisation of the Ewoyaa Lithium Project by Barari DV Ghana Limited, a subsidiary of Atlantic Lithium Cabinet considers a revised proposal for the project, Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has to Parliament.
According to him, the Ministry will soon submit a memo with revised proposals to Cabinet for consideration and, subsequently, to Parliament for ratificationin an effort to execute the deal, following recent economic pressures affecting the venture.
Mr Buah made the disclosure during a parliamentary session, in response to a question from the Member of Parliament for Mfantseman, Dr. Ebenezer Prince Arhin, under whose jurisdiction the project is located.
“The Ministry has notified Cabinet of the company’s request,” the Minister stated, “and will present a revised memo for Cabinet’s consideration and onward submission to Parliament to ensure the project’s survival.”
Lithium price collapse threatens viability
The Ewoyaa Project, developed by Barari DV Ghana Ltd a subsidiary of Australia-based Atlantic Lithium has come under significant threat due to a sharp collapse in global lithium prices, which have declined over 80% since their 2022 peak. This downturn has undermined the project’s economic viability.
According to the Minister, the company submitted a formal request to the Minerals Commission, citing unsustainable market conditions. The price of lithium had fallen below US$675 per tonne—the estimated cost of production—rendering the current terms of Ghana’s new revenue framework unfeasible.
Barari’s original mining lease, granted in October 2023 for a period of 15 years, was submitted to Parliament in 2024 but was not ratified before the House adjourned for the general elections.
Gov’t considers flexible revenue terms
The Minister revealed that the Ministry has received multiple petitions from local chiefs and community leaders, emphasizing the project’s potential to create jobs, improve livelihoods, and drive infrastructure development.
In response, the Ministry is exploring a scaling mechanism for royalties and other fiscal obligations.
“We are examining whether royalty rates can be adjusted in response to global price movements,” Hon. Buah said. “For example, if the lithium price returns to US$3,000 per tonne, we could revert to the 10% royalty rate to ensure the project becomes profitable again. The benefit to the country lies not just in royalties, but in jobs, value addition, and long-term economic transformation.”
The revised memo under consideration will reflect these dynamics, and engagements with the company are ongoing.
Ghana’s new mining framework and industry pushback
Under Ghana’s new mining revenue regime, lithium producers are required to grant a 10% free carried interest to the state and pay a 13% royalty on gross revenue, a measure aimed at maximizing state benefits from strategic minerals.
Atlantic Lithium is seeking relief from these terms to allow the Ewoyaa Project to move forward. Several global producers, including those in Australia and Latin America, have halted operations or delayed new projects due to the market slump.
Strategic significance of the Ewoyaa Project
The Ewoyaa Lithium Project is considered one of the most promising new lithium developments in West Africa. It boasts estimated reserves of 35–40 million metric tons of lithium-bearing ore and is projected to produce 360,000 tons of lithium concentrate annually, primarily for export to the United States.
Industry analysts estimate the project could become a top 10 global producer of spodumene concentrate, positioning Ghana as a new player in the global EV battery supply chain, currently dominated by Australia, Chile, and China.
However, construction has stalled due to delayed parliamentary ratification and depressed lithium prices, raising concerns about development timelines.
Global outlook and policy implications
Despite recent signs of price stabilization, market analysts remain cautious. Global demand for EVs remains robust, but is being outpaced by new mine supply. Furthermore, geopolitical factors, including U.S. tariffs on Chinese EV components, are complicating global trade flows and investor sentiment.
“Ghana’s objective remains clear,” the Minister emphasized. “We must add value to our mineral resources, ensure fair returns for the country, and transform local economies. To the extent that this project aligns with that vision, we will support it.”
The Ministry assures Parliament that it will update the House as the revised terms are finalized and the necessary legislative processes are completed.
Natural Resource Governance Institute (NRGI), has cautioned Ghana to ensure strict parliamentary scrutiny of the demands being made by Atlantic Lithium before varying the agreement to safeguard the interest of the public.
