The Ghanaian government is set to revisit the terms of the Ewoyaa Lithium Agreement following a dramatic fall in global lithium prices, which has cast doubt on the viability of the project.
During a parliamentary session on Wednesday last week, Minister for Lands and Natural Resources, Emmanuel Amarh Kofi Buah, revealed that the sharp decline in lithium prices once around US$3,000 per tonne has significantly impacted the project’s prospects.
Currently, market prices have fallen below US$675 per tonne, which is the estimated production cost for the lithium concentrate according to the company’s feasibility report.
The Minister explained that this price collapse has caused major lithium producers worldwide to cut production, lay off workers, and postpone new projects, including Ghana’s own Ewoyaa Lithium operation.
In response, Barari DV Ghana Limited, the mining company granted a 15-year lease in October 2023 covering 42.63 square kilometers at Mankessim in the Central Region, has requested a revision of lease terms to prevent the project’s collapse.
The lease was submitted to Parliament in 2024 and considered by the Select Committee on Lands and Natural Resources. However, parliamentary ratification was delayed due to the adjournment for the 2024 general elections.
Now, faced with the challenging market conditions, the government has been apprised of the company’s request and is preparing to present a revised proposal to the Cabinet.
Minister Buah emphasized that the Ministry has already notified Cabinet and will soon submit a new memo outlining the proposed adjustments.
The goal is to find a sustainable pathway forward that safeguards the project and Ghana’s stake in the rapidly evolving battery metals industry.
