Atlantic Lithium Limited has expressed confidence in moving forward with the development of Ghana’s first lithium mine, despite a dramatic fall in global lithium prices that has threatened the project’s economic viability.

The company's Executive Chairman, Neil Herbert, insists that with the right collaboration and supportive fiscal terms, the Ewoyaa Lithium Project—located near Mankessim in Ghana’s Central Region—can still be delivered successfully.

“We are dedicated to working in a spirit of partnership with the Government of Ghana and our host communities to ensure Ewoyaa becomes a flagship project for the country and the region,” Herbert stated.

“While current lithium prices present headwinds, we believe that through collaboration and prudent fiscal measures, we can advance Ewoyaa to production and deliver lasting value for all stakeholders.”

Atlantic Lithium’s optimism follows recent engagement with the Ghanaian government to request fiscal concessions necessary to sustain the project in light of tumbling lithium prices. Since the grant of the 15-year mining lease in October 2023, the price of lithium—critical in electric vehicle (EV) battery production—has plunged more than 80% from its peak in late 2022.

The company, which has invested nearly US$70 million since 2016, is counting on discussions with government officials and key stakeholders to yield a revised fiscal framework that aligns with current market conditions. Talks remain ongoing.

Despite the global downturn in lithium prices, Atlantic Lithium says it remains committed to advancing the Ewoyaa project to production and ensuring it delivers broad-based benefits to Ghana, including job creation, skills transfer, and revenue generation.

The project was poised to position Ghana among the top 10 producers of spodumene concentrate—a key lithium-bearing mineral—with an annual output projected at 360,000 tons, mainly for export to the United States.

However, in addition to falling commodity prices, delays in parliamentary ratification of the lease have slowed progress toward the construction phase, which had initially been scheduled to begin by the end of 2024.

In a formal statement, the company reaffirmed its commitment to working closely with both the government and local communities to deliver a long-term, sustainable mining operation.

“Atlantic Lithium remains steadfast in its commitment to progressing the Ewoyaa project to production, working closely with the Government of Ghana and local communities,” the statement read.

“The Company continues to engage in constructive discussions with all stakeholders to ensure that the project delivers long-term benefits for Ghana, including critical revenues, local employment and skills development.”