Mining investors have raised concerns about the prolonged delay in ratifying Ghana’s lithium mining lease for the Ewoyaa Lithium Project in the Central Region, warning that the uncertainty could undermine investor confidence and slow the development of what is expected to become the country’s first lithium mine.
The lease, which was secured by Atlantic Lithium through its local subsidiary Barari DV Ghana Limited, was originally signed on October 20, 2023. However, the agreement has yet to receive parliamentary ratification, a constitutional requirement before large scale mining operations can begin in Ghana.
The Ewoyaa Lithium Project has been widely regarded as a strategic mineral development for Ghana, given the increasing global demand for lithium, a critical component used in the production of electric vehicle batteries and renewable energy storage systems. The project has the potential to place Ghana among emerging producers of lithium concentrate and strengthen the country’s role in the global green energy supply chain.
Despite this potential, the ratification process has faced repeated delays largely due to political disagreements and concerns about the fiscal terms of the agreement. According to reports, the initial lease agreement stalled in Parliament after political gridlock prevented lawmakers from completing the ratification process.
In response to the stalemate, the government introduced a revised version of the lease in 2025 and laid it before Parliament again on November 11, 2025. However, controversy soon emerged over changes to the royalty structure, particularly the reduction of the proposed royalty rate from 10 percent to 5 percent. The disagreement prompted the Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, to withdraw the lease from Parliament on December 10, 2025 for further consultations.
Following the withdrawal, the ministry reintroduced the agreement to Parliament on December 19, 2025 together with a proposed sliding royalty system designed to address concerns over the reduced rate. Under the revised proposal, the royalty rate would fluctuate between 5 percent and 12 percent depending on prevailing global lithium prices. The revised lease was subsequently referred to Parliament’s Lands and Natural Resources Committee for further review before it can be presented to the full House for final approval.
Investors are increasingly worried that the prolonged uncertainty surrounding the ratification could affect project timelines and financing arrangements. Parliamentary approval is considered the final regulatory step required before the project can move forward with full scale development, investment decisions and construction activities.
Atlantic Lithium has already invested approximately 70 million dollars in exploration and development activities related to the Ewoyaa project since 2016. The company and its investors see the project as a significant opportunity to unlock Ghana’s lithium potential and contribute to the global supply of battery minerals.
The project is located about 100 kilometres southwest of Accra and is expected to produce significant quantities of spodumene concentrate over a projected lifespan of more than a decade. A feasibility study suggests the mine could produce about 3.6 million tonnes of concentrate over twelve years once production begins.
Beyond its economic significance, the project also carries implications for local communities in the Mfantseman area where the mine is located. Some communities are expected to be relocated once mining operations begin, while others anticipate employment opportunities, infrastructure development and community investments tied to the project.
Under earlier terms of the agreement, Ghana was expected to secure a 13 percent free carried interest in the project along with corporate taxes, ground rents and other levies that could significantly increase government revenue. Additional provisions also included allocating 1 percent of total revenue to a community development fund intended to support infrastructure and social projects in affected communities.
However, debates over whether the fiscal terms provide sufficient value for the country have intensified scrutiny of the agreement. Policy analysts and civil society groups have argued that the structure of the lease must ensure Ghana maximises benefits from its mineral resources while maintaining an attractive investment environment.
For investors, the key concern remains regulatory certainty. Mining projects typically require large upfront capital investments and long development timelines, making stable policy and clear regulatory approvals essential to securing funding.
Industry observers warn that extended delays could discourage future investors from committing capital to Ghana’s emerging battery minerals sector if the approval process appears unpredictable.
As global competition for lithium resources intensifies due to the rapid expansion of electric vehicle manufacturing and renewable energy technologies, Ghana’s ability to move quickly on strategic mineral projects could play a crucial role in determining whether the country secures a strong position in the global lithium market.
For now, the Ewoyaa Lithium Project remains in regulatory limbo as Parliament’s Lands and Natural Resources Committee continues its review of the revised mining lease before any final decision is taken.
Ghana must lead its lithium future – Dr John Kpikpi
