Africa’s first US-bound lithium project is moving forward — a win for Washington’s push to break China’s grip on the critical minerals that power electric vehicles and batteries.
Atlantic Lithium Ltd. has secured approval to develop Ghana’s first lithium mine on terms more favorable than those sought under a previous government.
The Details
The Australian miner’s local unit will pay royalties on a sliding scale tied to spot prices of spodumene concentrate — ranging from 5% when prices are below $1,500/ton to 12% when prices exceed $3,200/ton.
- This replaces a flat 10% rate Ghana had sought when Atlantic Lithium first applied more than two years ago. The 15-year lease stalled as lithium prices retreated from late-2022 highs.
- A new royalty framework for lithium and gold, adopted this month, finally paved the way for the deal.
- The Ewoyaa mine will be Africa’s only US-bound lithium project — all other African lithium projects are backed by Chinese funding.
Half of the mine’s output is tied to Elevra Lithium — formed from the merger of Piedmont Lithium and Sayona Mining, which held offtake agreements with Tesla and LG Chem.
Atlantic Lithium can now make progress on project funding and move toward a final investment decision, the company said.
Between The Lines
Africa has become a major source of lithium for Beijing’s dominant battery industry in recent years, as Chinese firms have invested billions to build mines in Zimbabwe and Mali.
The Trump administration has prioritized shoring up US access to critical minerals and reducing dependence on China across a range of mineral products.
Source: Bloomberg
