Ghana’s conversation around lithium mining is taking on a broader dimension, as experts emphasize that the mineral’s value extends far beyond royalty revenues.
The Third World Network‑Africa has highlighted that focusing mainly on royalties captures only the bottom end of the value chain.
Coordinator Dr. Yao Graham told attendees at an international consultation on Energy Transition, Critical Minerals, and Structural Economic Transformation in Africa that lithium presents an opportunity for Ghana to develop new industries, including battery production, and to stimulate structural economic transformation.
“The ultimate benefit from lithium is not in royalties alone,” Dr. Graham said. “It comes from producing commodities like batteries and building industries that add value locally. Focusing solely on royalties is a very narrow discussion.”
Currently, Parliament has raised concerns that the 10 percent royalty deal signed by the Akufo-Addo government with Barari DV Ghana Limited for lithium mining violated the Minerals and Mining (Amendment) Act, 2010, which sets a 5 percent royalty. The government has since presented a revised agreement to align with the legal rate.
The conversation around lithium has intensified following the discovery of lithium deposits at Ewoyaa in the Central Region, which in 2023 earned Ghana its first mining lease for the mineral under the Minerals and Mining Act. The licence, awarded to Barari DV Ghana Limited, a subsidiary of Atlantic Lithium, marked the country’s entry into the global lithium supply chain.
Initial projections indicated substantial volumes of spodumene concentrate annually, a key raw material for battery manufacturing. The government’s “green minerals” framework was designed to encourage local value addition, state participation, and even listings by mining firms on the Ghanaian capital markets, with hopes that lithium could help Ghana pivot toward energy transition, industrialization, and clean-technology exports.
However, development of the mine has faced delays, including regulatory hurdles, fluctuations in global lithium prices, and pending ratification in Parliament. Even with the royalty adjusted to the statutory 5 percent, discussions are now shifting toward longer-term planning.
Experts underscore that enforcement of royalty laws alone will not guarantee lasting benefits. Policy briefs and reports suggest that establishing a lithium refinery under current market and cost conditions could require significant investment, with careful planning needed to ensure sustainability and profitability.
The Third World Network‑Africa continues to advocate for a broader strategy, encouraging Ghana to focus on processing capacity, regional collaboration with other African lithium producers, and building a comprehensive value chain from extraction to battery production.
