Ghana to Enter Electric Vehicle Market through $30 Million Deal with Atlantic Lithium
Ghana’s state-owned Minerals Income Investment Fund (MIIF) is negotiating a $30 million investment in Atlantic Lithium (A11.AX), which is constructing a lithium mine in the West African country.
Lithium, a critical component in batteries used in electric cars, is in great demand, and prices have skyrocketed, sparking interest in projects around Africa.
The MIIF announced plans to acquire an equity share in Atlantic Lithium, which has consented to float on the Ghana Stock Exchange. The fund did not specify the size of the stake it was considering purchasing.
Atlantic Lithium simply stated that “discussions are underway,” and that there is no guarantee that an investment would be made. A firm spokeswoman did not immediately reply to a request for comment on a prospective Ghana stock exchange listing.
The MIIF is in charge of royalties from gold mines in Ghana, Africa’s largest precious metal producer. A stake in Atlantic Lithium would give the firm a foothold in the battery metals business.
According to the fund’s chief executive, Edward Nana Yaw Koranteng, the fund’s focus is on the development of lithium processing and battery production to serve the region’s electric vehicle (EV) industry.
“Electric cars represent a US$7 trillion market potential between 2023 and 2030, and a US$46 trillion market opportunity between 2023 and 2050,” the Chief Executive Officer of MIIF, Edward Nana Yaw Koranteng stated.
This provides prospects for Ghana, which may be capitalized on by the existing automobile development plan, which has already resulted in the establishment of six vehicle assembly factories in Ghana.
According to Edward Nana Yaw Koranteng “Investing in Atlantic Lithium speaks to President Nana Akufo Addo’s vision of ensuring that mining provides sustainable long-term value for Ghanaians. This vision finds meaning in MIIF’s mandate and the plan to invest in the lithium resource and the entire value chain. We are not only interested in developing the mineral resource but to invest in the value chain.”
He added, “our strategic focus is to support the development of lithium processing, development of battery manufacturing and additional inputs, and the preparedness to support an electronic vehicle (EV) market in Ghana to serve the sub-region.
