An investment of $30 million is being negotiated by the government-owned Minerals Income Investment Fund (MIIF) of Ghana in Atlantic Lithium (A11.AX), which is developing a lithium mine there.
Since lithium is in such high demand and the price has skyrocketed, interest in projects across Africa has increased. Lithium is an essential component of batteries used in electric cars.
Atlantic Lithium has agreed to list on the Ghana Stock Exchange, and the MIIF has announced plans to purchase equity shares in the company. The size of the stake the fund was considering buying was not stated.
There is no assurance that an investment will be made, as Atlantic Lithium merely stated that “discussions are underway.” In response to a request for comment on a potential Ghana stock exchange listing, a company spokeswoman did not provide a response right away.
The MIIF is in charge of royalties from Ghana’s gold mines, which are the continent’s biggest producer of precious metals. Gaining ownership in Atlantic Lithium would allow the company to enter the battery metals market.
The development of lithium processing and battery production to support the region’s electric vehicle (EV) industry is the fund’s primary focus, according to Edward Nana Yaw Koranteng, the chief executive of the fund.
According to Edward Nana Yaw Koranteng, chief executive officer of MIIF, “Electric cars represent a US$7 trillion market potential between 2023 and 2030, and a US$46 trillion market opportunity between 2023 and 2050.”
This offers Ghana opportunities that the current automobile development plan, which has already led to the establishment of six vehicle assembly factories in Ghana, may take advantage of.
“Investing in Atlantic Lithium speaks to President Nana Akufo Addo’s vision of ensuring that mining provides sustainable long-term value for Ghanaians,” says Edward Nana Yaw Koranteng. The mission of MIIF and its strategy to invest in the lithium resource and its entire value chain give meaning to this vision. We want to invest in the value chain in addition to developing the mineral resource.
Our strategic priorities, he continued, “are to support the development of lithium processing, the development of battery manufacturing and additional inputs, and the readiness to support an electronic vehicle (EV) market in Ghana to serve the sub-region.”