After two years of waiting, the embattled Ewoyaa Lithium Lease with Atlantic Lithium has finally been laid before parliament for consideration and ratification, but policy think tank, IMANI Africa, is kicking against the rushed ratification of the lease.
IMANI Africa is urging lawmakers to pause and think carefully before giving the deal a green light.
The think tank, in its latest criticality analysis on the issue, says two years after the initial agreement was signed with much fanfare, the revised version still carries deep flaws that could rob the country of fair value from its lithium wealth.
IMANI’s analysis titled “The Atlantic Lithium (Ewoyaa Project) Deal: Why Ghana’s Parliament Should Not Ratify a Flawed Agreement” cites at least five reasons why it is making such a call.
Unstable Lithium Prices Threaten Ghana’s Revenue
IMANI narrates that when Ghana first signed the deal, lithium prices were at record highs, around US$2,800 per tonne. The project’s financial projections were based on that momentum. However, prices have since tumbled to about US$900 per tonne, exposing how risky it is for Ghana to tie its royalties to the company’s “realized sales price.”
According to IMANI, this means that when global prices fall, Ghana’s earnings collapse with them, while Atlantic Lithium and its partners can still profit through internal pricing arrangements.
Without an independent benchmark or a flexible pricing formula, Ghana could end up earning far less than expected. IMANI believes Parliament must ensure the new contract protects national revenue when market conditions change and not leave it to the mercy of global price swings.
The Dream of Local Refining Is Still Just Talk
One of the government’s biggest selling points for the Ewoyaa project was that it would lead to local processing, which is turning raw lithium into battery-grade material in Ghana.
But IMANI’s review of the company’s feasibility study, which has been confirmed, shows this dream may not hold up in reality.
The study found that a refinery would only be viable if at least three mines of similar size were developed or if the government provided huge financial incentives. In plain terms, that means refining locally is currently too costly.
IMANI warns that Parliament should not accept another “aspirational clause” that promises beneficiation but delivers nothing. Lawmakers must either demand a clear plan to make refining possible or admit honestly that it will not happen under current conditions.
Atlantic Lithium May Be Too Small for the Job
IMANI also raises red flags about the operator’s capacity. Atlantic Lithium is a junior mining company, small, with limited funds and a shaky share price. The group relies heavily on bigger partners like Piedmont (now Elevra Lithium) and Ghana’s Minerals Income Investment Fund (MIIF) to move the project forward.
The fact that the project has been delayed for two years, IMANI notes, shows the company’s weakness and uncertainty about financing. The think tank warns that Parliament must include performance guarantees, deadlines for financial closure, and step-in rights so Ghana can take control if the operator fails to deliver.
Without such safeguards, Ghana would be gambling its resources on a partner not strong enough for the task.
MIIF’s Investment Must Be Protected
Ghana’s Minerals Income Investment Fund, which holds the country’s equity in the project, has been presented as a patriotic move, which is a way for Ghana to have a direct stake in its minerals.
But IMANI cautions that this, too, must be done carefully. The think tank says MIIF’s money is sovereign capital, meaning it belongs to all Ghanaians and must be protected. Without anti-dilution clauses, clear valuation rules, and board representation, Ghana could see its stake quietly eroded or mispriced over time.
IMANI stresses that MIIF should not become a “passive investor” waiting for dividends that may never come, but an active watchdog ensuring the country benefits fairly.
The Market and Technology Are Moving Fast
Lithium is a hot commodity today, but IMANI reminds Parliament that the future may not look the same. Battery technology is evolving quickly, and recycling is becoming cheaper and more efficient. A rigid, long-term contract that cannot adapt to new technologies or market realities could leave Ghana stuck with outdated terms.
IMANI urges lawmakers to insist on adaptive clauses, such as royalty bands that rise or fall with prices, renegotiation options when technology shifts, and rights of first refusal for future refining and recycling initiatives.
Without these, Ghana risks signing a deal that benefits others long after the market has moved on.
A Chance to Get It Right or Repeat Old Mistakes
With these reasons, IMANI is calling on parliament not to ratify for the sake of ratifying. The two-year delay since the first deal gives Ghana rare leverage to demand a fairer, smarter contract.
The project has not yet begun, lithium prices have slumped, and the company’s weaknesses are exposed, all pointing to the need for a complete rethink.
Despite the agitations by Atlantic Lithium, the community members, and a section of Ghanaians over the delays, IMANI maintains that it is time to pause, rethink, and restructure the deal in the best interest of the country.
