Atlantic Lithium wins key Ghana approval for mine

Australia’s Atlantic Lithium (ASX: A11) has secured Ghanaian parliamentary approval to develop the Ewoyaa project, the country’s first lithium mine, under revised royalty terms tied to market prices.

The ratified 15-year lease introduces a sliding royalty scale on spodumene concentrate, ranging from 5% when prices fall below $1,500 a tonne to 12% when they exceed $3,200, replacing the flat 10% rate previously sought by Ghana. The new structure follows a broader overhaul of royalty frameworks for lithium and gold adopted earlier this month, clearing a path for the long-delayed project.

The approval formally backs plans for a mine and processing plant and allows Atlantic Lithium to advance financing discussions as it moves toward a final investment decision. 

The project had stalled after lithium prices retreated from late-2022 highs, prompting the company to push for more flexible fiscal terms.

Ewoyaa is expected to produce 3.6 million tonnes of spodumene concentrate over 12 years, making it the third-largest lithium project under development in Africa, according to the company. Atlantic Lithium said the project stands out as the continent’s only United States-aligned lithium development, in contrast to others backed by Chinese investment.

Half of Ewoyaa’s output is committed to Elevra Lithium (Nasdaq: ELVR; ASX: ELV), the merged entity of Piedmont Lithium and Sayona Mining, which previously held offtake agreements with Tesla (NASDAQ: TSLA) and LG Chem (KRX: 051910).

“Watershed” moment

CEO Keith Muller said the approval marks a turning point for both the company and Ghana.

“Parliamentary ratification marks a watershed moment for both Ghana and Atlantic Lithium,” Muller said.

He added the company will soon release details on work completed in the second half of 2025 to improve project economics amid ongoing lithium price volatility, helping define the next phase of development.

Africa has become a key supplier of lithium to China’s dominant battery sector, with billions invested in projects across Zimbabwe and Mali. At the same time, the U.S. administration under President Donald Trump has prioritized securing access to critical minerals and reducing reliance on Chinese supply chains.