Ghana will have to take possession of its lithium – IEA  – Life Pulse Daily

Introduction

Ghana’s lithium boom is here, and experts say the government must seize control to unlock maximum value for the nation. In December 2025, the Institute of Economic Affairs (IEA) issued a bold call: take full ownership of Ghana’s lithium resources, limit private mining to contracted operations, and build a complete domestic value chain. This recommendation comes as Accra weighs a revised lithium deal for the Ewoyaa project, one of West Africa’s most promising lithium deposits. The stakes are high: with an estimated 3.6 million tonnes of spodumene, Ghana could generate up to $172 billion in revenue at current market prices. But to avoid repeating past mistakes with other natural resources, the IEA urges a strategic, state-led approach. This article breaks down why Ghana must own its lithium, how to do it, and what it means for the country’s energy transition, economic growth, and national security.

Key Points

Background

Why Lithium Matters Now

Lithium is the cornerstone of the global energy transition. From electric vehicles (EVs) to renewable energy storage, lithium-ion batteries are essential. As demand surges, prices remain volatile but generally strong, making lithium a critical mineral for developing economies. Ghana, with its rich spodumene deposits, is well-positioned to enter this high-value market.

Ghana’s Lithium Resources

Ghana’s lithium potential centers on the Ewoyaa mine in the Western Region. The deposit holds an estimated 3.6 million tonnes of spodumene, a lithium-bearing mineral. Spodumene is processed into lithium carbonate or hydroxide, key inputs for battery production. Unlike many resource-rich nations, Ghana has a chance to avoid the “resource curse” by building domestic capacity and retaining ownership.

The Ewoyaa Project

The Ewoyaa lithium project is a joint venture between the Ghanaian government and Barari DV, a private investor. The government’s $32 million investment signals its commitment, but critics argue it’s not enough to secure long-term national interests. The IEA warns that without state control, Ghana risks losing most of the value to foreign partners.

Analysis

Strategic Mineral Status

Declaring lithium a strategic mineral would elevate its importance to national security and economic development. This status would enable the government to prioritize lithium in policy, budgeting, and regulation. It would also justify state ownership and intervention to ensure that the resource serves the public good.

The Case for a State-Owned Ghana Lithium Company

The IEA’s proposal for a Ghana Lithium Company (GLC) is modeled on successful state-owned enterprises in resource-rich countries. The GLC would:

• Own and manage all lithium assets.
• Contract private firms for mining operations under strict oversight.
• Develop processing facilities to convert spodumene into battery-grade materials.
• Invest in battery manufacturing to capture higher-value segments.
• Ensure transparency and accountability in revenue flows.

State ownership doesn’t mean excluding the private sector; it means leading it. By acting as the primary shareholder, the government can set terms that favor national development.

Economic Impact: The $172 Billion Opportunity

With current lithium carbonate prices at $9,000 per tonne, the Ewoyaa project’s 3.6 million tonnes of spodumene could generate $172 billion. This figure assumes processing within Ghana, which adds significant value compared to exporting raw ore. For context, Ghana’s GDP in 2025 is roughly $80 billion, meaning lithium alone could more than double the economy’s size over time.

Legal and Regulatory Challenges

The revised lithium settlement faces criticism for proposing a 10% royalty rate instead of the legally mandated 5%. Former Minister of Lands and Natural Resources Inusah Fuseini argues this makes the deal “tainted by illegality.” The IEA and other experts urge Parliament to reject and renegotiate the agreement to align with existing law and national interests.

Learning from Past Mistakes

Ghana’s experience with gold and other minerals shows how weak regulation and low state ownership can lead to limited local benefits. Professor Aaron Mike Oquaye points to Dubai as a model: a nation that retained control of its oil wealth to build a diversified, modern economy. Ghana can do the same with lithium by avoiding royalty-only models and instead building industrial capacity.

Community Engagement and Sustainable Mining

Local mining communities often bear the costs of extraction without reaping the rewards. The IEA and National Chief Imam’s spokesperson, Sheikh Aremeyaw Shaibu, stress the need for deeper engagement with these communities. Transparent processes, fair compensation, and participation in decision-making can prevent conflict and ensure that lithium mining improves livelihoods rather than undermining them.

Practical Advice

Steps for Government

1. Declare lithium a strategic mineral through executive order and legislative backing.
2. Establish the Ghana Lithium Company as a state-owned entity with a clear mandate.
3. Review and update mining laws to support value addition and state ownership.
4. Renegotiate the Ewoyaa settlement to ensure compliance with legal royalty rates and maximize national gains.
5. Invest in infrastructure for processing and battery manufacturing.
6. Create a transparent revenue management framework with public reporting.
7. Engage local communities through education, consultation, and benefit-sharing mechanisms.

For Investors and Private Sector

• Partner with the GLC as a contractor, not a primary owner.
• Commit to technology transfer and local content development.
• Adopt best practices in environmental and social governance (ESG).
• Support capacity building and job creation for Ghanaians.

For Parliament

• Reject the current revised lithium settlement until it aligns with law and national interest.
• Conduct public hearings to gather expert and community input.
• Pass legislation to upgrade Ghana’s mining sector for the 21st century.
• Monitor the GLC’s performance and ensure accountability.

FAQ

Conclusion

Ghana stands at a crossroads. The discovery of significant lithium deposits offers a once-in-a-generation opportunity to transform the economy and secure energy independence. But this potential will only be realized if the government takes bold, strategic action. The IEA’s recommendations—declaring lithium a strategic mineral, creating a state-owned company, and building a domestic value chain—are not just sound policy; they are essential for national prosperity. By learning from past mistakes and looking to successful models abroad, Ghana can ensure that its lithium boom benefits all its people, not just a few foreign investors. The time to act is now.