Highlights

• Ghana enters critical mineral market with Ewoyaa lithium project.
• Offering 10% royalty and 6% government equity.
• Community perspectives reveal mixed expectations.
• Potential social and environmental challenges in lithium development.
• Investors must navigate execution risks.
• Market volatility and social license complexities in this emerging lithium venture.

Ghana is stepping onto the global critical mineral stage with bold ambition—and a lithium project that’s drawing both investor interest and civil society skepticism. A July 2025 Carnegie Endowment briefing (opens in a new tab) paints a vivid, field-level portrait of the Ewoyaa lithium deal (opens in a new tab), led by Atlantic Lithium (via its Ghanaian subsidiary Barari DV) and backed by Piedmont Lithium. The authors dig into everything from community voices to mining law, and the result is a report as revealing as it is aspirational.

Lithium is considered a critical mineral. It's essential for a wide range of technologies, particularly those related to the energy transition, such as lithium-ion batteries (opens in a new tab) used in electric vehicles (opens in a new tab) and energy storage systems (opens in a new tab). The growing demand for these technologies is driving a surge in lithium demand, making it a critical component of modern energy systems and a focus for supply chain security.

Let’s get to the facts. Ghana’s 15-year lease at Ewoyaa is real, ratification by Parliament pending. The numbers cited are accurate: a 10% royalty, 6% government equity via the Minerals Income Investment Fund (MIIF), and a 1% community development fund. Piedmont’s stake—22.5%, with options to double it—is verifiable and linked to a Tesla supply agreement. MIIF’s proposed $30M investment is also confirmed. Ghana’s new Green Minerals Policy (opens in a new tab), which governs this deal, is on the books and emphasizes value addition, local equity, and higher royalties compared to traditional gold contracts.

Where the Carnegie piece shines is in capturing ground-level nuance. Community interviews reveal high hopes for employment, but low clarity on environmental risks, relocation terms, and long-term benefits. Compensation claims are inconsistent—some farmers report as little as $19 for crop destruction. These voices matter. They suggest the real risk for investors isn’t just regulatory—it’s social license.

But the article also drifts into rose-tinted territory. The assumption that Barari will build refineries, resettle communities with modern homes, and train a local workforce is largely based on company intent, not contract enforcement. The piece gives airtime to civil society calls for a “Ghana Lithium Company” but glosses over historical weaknesses in state-run industrial projects.

Most importantly, it sidesteps the market question: lithium prices are volatile, and Ewoyaa’s breakeven sits dangerously close to current global averages. No downstream plant exists yet. No off-take price transparency. And no guarantees.

Bottom line for investors: Ghana’s lithium narrative is compelling, and the legal reforms are encouraging. However, execution risk, social friction, and market pricing remain at the forefront. Watch for parliamentary ratification, refinery feasibility, and MIIF’s next move