Ghana’s first lithium mine to open in 2025

The lithium mine in Ghana is expected to be operational in the second quarter of 2025 and reach its full production capacity of 365,000 tonnes of lithium per year in 2026. In June 2023, the partners already published a final feasibility study (“DFS”) to confirm the economic viability and profitability potential of the project. Specifically, the study indicates a production of 3.6 million tonnes of spodumene concentrate over a mine life of twelve years.

Geographically, the project covers about 560 square kilometres. The mine is well connected, it says. The port of Takoradi is only 110 kilometres away, the capital Accra 100 kilometres.

The two mining companies Atlantic Lithium and Piedmont Lithium are intertwined and are now investing in the project, subject to pending approvals. The Minerals Income Investment Fund of Ghana (MIIF) is also acquiring 6% of the shares in Ewoyaa – for 27.9 million dollars. Atlantic and Piedmont will thus each hold 47 % in the future.

Meanwhile, Piedmont says it will finance its share of the investment costs for Ewoyaa through the cash flow of its joint venture North American Lithium in Quebec. The company plans to use the lithium feedstock from Ghana as feedstock for its planned 30,000 tonne per year lithium hydroxide conversion plant in the US state of Tennessee.

Patrick Brindle, chief operating officer of Piedmont Lithium and board member of Atlantic Lithium, expresses that the investment agreement is a strong signal of the Ghanaian government’s confidence in Ewoyaa. “MIIF’s investment and the significant support this financing represents will further de-risk the Ewoyaa project. We believe MIIF’s investment validates both the work done to date by our partners and the commitment of the Ghanaian government to support diversified mining development.” Ewoyaa is a core project for Piedmont Lithium, he said.

Piedmont came to the attention of the eMobility world in 2020 when it signed an off-take agreement with Tesla for spodumene concentrate from a Piedmont deposit in North Carolina. As the start of mining operations there was delayed, the start of deliveries to Tesla was also postponed – and replaced by a completely new agreement at the beginning of this year. According to this agreement, Tesla will be supplied with SC6 from the second half of 2023, but also from Canada.

The North American Lithium Lmine in Quebec, in which Piedmont holds a 25 per cent stake, is currently the only lithium mine in North America that is already mining commercially. The origin of battery materials is becoming increasingly important due to EV tax credit requirements in the US – hence LG Chem’s recent announcement that it would purchase lithium mined in the US from Piedmont and supply it as end product to “key North American customers”.

yen.com.gh, kitco.com, piedmontlithium.com, atlanticlithium.com.au