Atlantic Lithium says it remains committed to advancing Ghana’s first lithium mine, the Ewoyaa Lithium Project, despite significant financial challenges exacerbated by a sharp decline in global lithium prices.
In a statement released on April 28th, the company acknowledged recent media reports about its appeal to the Ghanaian government for fiscal concessions. These discussions, it explained, are necessary to adjust the project’s financial model to current market realities, but they do not signal a retreat from its ambitions.
“Since the Ewoyaa Mining Lease was granted in October 2023, lithium prices have declined significantly,” the company stated. This drop in prices has pressured many lithium developers globally, prompting some to delay or cancel projects. However, Atlantic Lithium says it remains steadfast, emphasizing its ongoing commitment to advancing the Ewoyaa project.
The drop in lithium prices has had a direct impact on the project’s internal rate of return (IRR), which has fallen dramatically from 105% to just 13.6%. This significant decrease has raised concerns about the project’s profitability, pushing Atlantic Lithium to appeal to the Ghanaian government for fiscal concessions and revisions to the fiscal terms of the project.
These terms currently include a 10% free carried interest for the state and a 13% royalty on gross revenue, both of which are part of Ghana’s new critical minerals framework. The company stressed that without adjustments to these terms, the project may not be financially viable.
To cope with the financial pressures, Atlantic Lithium has already taken steps to scale down its operations. In October 2024, the company laid off 25 workers and plans to cut an additional 50 jobs by May 2025. Only a skeleton team is being maintained to keep the project’s critical activities running.
Despite these setbacks, the company emphasized that it continues to engage constructively with the government and other stakeholders to find a sustainable path forward. The company is confident that the success of the Ewoyaa project will bring significant benefits to Ghana, including critical revenues, local employment, and skills development, while also supporting the country’s role in the global energy transition supply chain.
Since the project’s inception in 2016, Atlantic Lithium says it has invested approximately $70 million into Ewoyaa, which holds an estimated 35–40 million tonnes of lithium-bearing ore. Once operational, the project is expected to produce around 360,000 tons of lithium concentrate annually. Half of this output is already earmarked for a U.S. refinery operated by Piedmont Lithium, one of Atlantic’s major partners.
