Ghana’s Lithium Future on Hold: Two years of delays test Political Will and Investor Confidence

It remains uncertain what has become of Ghana’s bold leap into the green minerals future. It is exactly two years since the Government of Ghana granted a 15-year mining lease to Atlantic Lithium for the Ewoyaa Lithium Project, located in the Mfantseman Municipality and the Abura-Asebu-Kwamankesse Districts of the Central Region.

Ghana’s much-heralded first lithium project now appears to have lost momentum due to delays in parliamentary ratification, while Mali has surged ahead in West Africa, bringing two lithium projects into production within the same period. As government reopens talks with the company amid falling global prices, questions remain about political will, bureaucratic inertia, and whether Ghana is losing momentum in the global energy transition race.

The lease, signed on October 19, 2023, was initially celebrated as a major breakthrough in Ghana’s quest to join the global lithium value chain. Then Lands and Natural Resources Minister Samuel Abu Jinapor described it as a “model agreement” that would redefine Ghana’s approach to critical mineral development.

Under the agreement, the government secured a 19% equity stake — comprising a 13% free carried interest and an additional 6% acquisition through the Minerals Income Investment Fund (MIIF). The deal also raised Ghana’s royalty rate from 5% to 10%, required the company to list locally on the Ghana Stock Exchange, and established a Community Development Fund to channel 1% of annual revenues into local projects. The project further promised to create over 1,200 jobs during construction, with significant economic benefits for host communities.

Yet, despite its promise, the agreement remains unratified by Parliament, a constitutional requirement under the Minerals and Mining Act, 2006 (Act 703). This has left the project in legal and regulatory limbo. During this period, the price of spodumene, the project’s key product, has tumbled from about US$3,000 per tonne to around US$850 per tonne.

In July 2025, the sector Minister, Emmanuel Armah-Kofi Buah, in response to a parliamentary question, disclosed that government was reviewing the lease agreement to salvage the project amid the volatility in global lithium prices.

Minister Buah emphasized that the revised terms would aim to protect national interests while ensuring the project’s feasibility under unstable market conditions. The review, he noted, would also address long-standing concerns from Parliament’s Select Committee on Lands and Natural Resources, civil society groups, and host communities regarding transparency, equity, and Ghana’s share of mineral benefits.

The outcome of these talks, he added, could set a precedent for how Ghana manages future critical minerals agreements in the rapidly evolving green economy. Since then, however, there has been no public update. Reports from Ewoyaa suggest significant staff layoffs at the company, though officials have declined to comment.

Stakeholder Reactions

Policy analyst and extractive governance advocate, Dr. Steve Manteaw, has expressed frustration over what he described as Ghana’s “sluggish response” in renegotiating the lease amid changing global dynamics.

In a Facebook post on July 20, 2025, Dr. Manteaw wrote:

“I woke up this morning with pain in my heart, disappointed by the fact that we have had to wait this long to decide on renegotiating the lithium contract in light of declining world prices. We were warned but did not listen to expert advice.”

He criticized the politicization of Ghana’s lithium debate, saying:

“How stupid we’ve been in allowing sentiments rather than knowledge to drive discussions around our lithium.”

Dr. Manteaw warned that further delays could render the project less attractive, as new alternatives to lithium — including sodium and magnesium — gain traction in global battery manufacturing.

“If we don’t hurry with the renegotiations, the project will suffer further,” he cautioned.

The Chief Operating Officer of the Ghana Chamber of Mines, Ahmed Nantogmah, has also urged Parliament to expedite ratification once the revised terms are finalized, warning that continued delays could cost Ghana vital investments and jobs.

Speaking on Good Afternoon Ghana (Metro TV, April 29), Nantogmah stressed that while protecting national interests is essential, Ghana must also project predictability and consistency in its regulatory processes.

“Once you allow a company—whether local or foreign—to begin operations, don’t impede their progress midstream. Changes in terms midway through can disrupt entire projects,” he said.

Nantogmah noted that the prolonged uncertainty has already affected local communities, leading to temporary layoffs and deferred infrastructure projects in the Central Region.

“The communities are waiting. The company has had to scale down operations due to uncertainty. These are real consequences of the delay,” he added.

The Road Ahead

Is the NDC government committed to reviving Ghana’s foremost lithium project? The constituencies of Felix Kwakye Ofosu, Member of Parliament for Abura-Asebu-Kwamankesse and Government Spokesperson, and Ebenezer Prince Arhin, Member of Parliament for Mfantseman, stand to benefit significantly from the project.

As Parliament prepares to reconvene in October 2025, the fate of the Ewoyaa Lithium Project may hinge on how swiftly and transparently the government navigates this renegotiation process.

Beyond a single project, the decision carries broader implications: it will signal whether Ghana is prepared to balance market realities with national aspirations — and whether it can move decisively from promise to production in its quest to lead Africa’s critical minerals revolution.

By Fred Dzakpata

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