Could Ghana’s emerging lithium sector become a model for how African nations navigate the global race for transition minerals that power the clean energy revolution?
That question is gaining urgency as the country’s first lithium project at Ewoyaa in the Central region moves closer to reality, offering potential lessons for Africa’s broader Green Minerals Strategy. This is in spite of the fact that Ghana is yet to come up with a blueprint or strategy on its green minerals. The country is presently preparing policy proposals for the regulation and management of green minerals to be incorporated into its Mining Policy,
At a recent media training workshop on Understanding Transition Minerals among other topics organized by the Natural Resource Governance Institute (NRGI) in Koforidua in Ghana’s Eastern region, experts noted that how Ghana manages this opportunity, from fiscal terms to value addition and sustainability could determine whether the country reaps lasting benefits or repeats the pitfalls of past resource booms.
Transition minerals, including lithium, cobalt, and rare earth elements, are essential for clean energy technologies and electric vehicles. With global demand soaring, major economies such as China, the United States, and the European Union are racing to secure supplies, build processing capacity, and protect access through policies like the U.S. Inflation Reduction Act and the EU Critical Raw Materials Act.
While Africa holds vast reserves of these minerals, Africa Senior Program Officer with NRGI Denis Gyeyir underscored that resource wealth alone will not deliver meaningful development.
“Ghana’s lithium prospects present a unique opportunity to move beyond extraction. The country must leverage this to promote local processing, job creation, and equitable revenue sharing,” he said. The African Green Minerals Strategy calls for policies that go beyond licensing, including plans for refining, technology transfer, and regional cooperation to drive long-term benefits.
Nowhere is this more evident than in Ghana’s push to develop its first lithium mine at Ewoyaa, a project that has entered a critical phase as Parliament continues to delay ratification of the mining lease agreement. The delay reflects growing scrutiny of the proposed fiscal terms and recent calls for transparency following Atlantic Lithium’s request for major tax concessions.
Through its Ghanaian subsidiary Barari DV Ghana Ltd, Atlantic Lithium is seeking significant fiscal relief including cutting the 10% royalty rate in half or adopting a sliding scale tied to global lithium prices, alongside reductions in corporate tax and import duties on capital equipment. The company argues that falling global lithium prices have made the project’s economics less attractive.
However, NRGI’s latest analysis suggests that Ghana’s current fiscal framework for the Ewoyaa project already offers strong value to the state, with an average government take of around 58% higher than comparable lithium regimes in Mali, Zimbabwe, and Western Australia.
The proposed fiscal package includes a 10% royalty on gross sales, 35% corporate tax, 13% free carried interest, 6% paid state equity, and additional levies for community development, education, and sustainability.
NRGI warns that granting permanent tax breaks could deprive Ghana of vital revenues should lithium prices recover, as many analysts expect in the medium term. Instead, the institute recommends that Ghana tighten tax avoidance protections by setting benchmark prices to prevent underpricing, capping interest deductions to limit profit shifting, and enforcing non-dilution clauses and clear dividend policies to secure its equity stake.
Stakeholders at the Koforidua event stressed that Ghana’s management of Ewoyaa will set an important precedent for its entire transition minerals sector. With global players accelerating efforts to lock in supplies, Ghana’s fiscal decisions could define its place in the green industrial revolution. Experts stress that any fiscal adjustments should be carefully structured to protect Ghana’s interests across price cycles, ensure sustainable development outcomes, and position the country as a credible player in the emerging battery minerals supply chain.
