Lithium Mining: MIIF to acquire minority stake in Atlantic Lithium with $33m capital injection
In a strategic move reflecting the burgeoning global demand for electric vehicle (EV) battery materials, Ghana’s Minerals Income Investment Fund (MIIF) is set to inject nearly US$33 million into a local lithium mine and secure a minority stake in Atlantic Lithium, the venture’s developer. The landmark deal, announced on September 8th, signifies Ghana’s emergence as a key player in the lithium supply chain and the wider clean energy transition.
MIIF’s investment encompasses a 6% equity stake in Atlantic Lithium’s Ghanaian projects, notably the groundbreaking Ewoyaa lithium mine. Valued at approximately US$27.9 million, this transaction positions Ewoyaa as Ghana’s pioneer lithium-producing facility, underlining the country’s commitment to the burgeoning EV revolution.
This financial maneuver is emblematic of the surging interest in lithium production, an essential component for EV batteries, amid the accelerating clean energy transformation. Furthermore, it underscores the pivotal role that African nations are playing in the global supply chain of critical minerals vital for renewable energy and EV industries.
In a prior strategic move, Atlantic Lithium attracted a 9% investment from Piedmont Lithium in 2021, securing a steady supply of spodumene, a high-purity lithium ore, and a coveted supply contract with EV giant Tesla Inc.
As part of the recent development, MIIF will also acquire a 3.05% stake in Atlantic Lithium for an additional US$5 million. This investment not only deepens MIIF’s involvement but also grants it the option to participate in a competitive bidding process for the lithium off-take agreement, cementing its position in the burgeoning lithium market.
Atlantic Lithium’s Chairman, Neil Herbert, emphasized the commercial competitiveness of the off-take agreement process, highlighting the significance of this transaction within the broader lithium landscape.
This strategic partnership between MIIF and Atlantic Lithium marks a pivotal moment for Ghana’s role in the global lithium supply chain and adds a significant chapter to the ongoing narrative of lithium’s ascent as a critical resource in the era of clean energy and electric mobility.
