• Revised lease introduces sliding-scale royalties linked to lithium prices
• Royalty rate falls to 5% at current spodumene price levels
• Parliamentary review expected in early 2026

Atlantic Lithium announced in a Dec 22 statement that a revised version of the mining lease for its Ewoyaa lithium project has been submitted to Ghana’s Parliament for ratification. The approval of the revised lease is a prerequisite for the start of construction at the project, which is expected to become the country’s first lithium mine. The updated document incorporates fiscal adjustments granted by the government, following requests from the company aimed at easing project development amid weak market conditions.

Under the original mining lease signed in 2023, the Ghanaian state secured a 13% free carried interest in the project, alongside a fixed royalty rate of 10% on the mine revenues. However, Atlantic Lithium has argued for several months that the sharp and prolonged downturn in lithium prices—down about 80% since 2023—undermines the project’s economic viability under those terms.

Accra has now responded to part of that request, particularly on royalties. According to details released by the company, the revised lease submitted to Parliament introduces a progressive royalty structure tied to lithium spodumene concentrate prices. The framework sets the royalty at 5% when prices are at or below $1,500 per ton, 7% for prices between $1,501 and $2,500 per ton, 10% between $2,501 and $3,000 per ton, and 12% for prices above $3,000 per ton.

With the spodumene price index currently standing at $1,378 per ton on the Shanghai Metals Market, the applicable royalty rate for Ewoyaa would therefore fall to 5%. This adjustment allows Ghana to accommodate Atlantic Lithium’s short-term concerns while positioning the state to capture greater upside should lithium prices recover. The revised structure leaves intact other key terms of the original lease, including the state’s free equity stake and the corporate income tax regime.

The policy choice comes as expectations grow of a longer-term shift in lithium market fundamentals. While current prices reflect oversupply, the International Energy Agency forecasts a supply deficit of around 40% by 2035, driven by rapid demand growth linked to the energy transition. Such dynamics could support higher prices over time, particularly given structural constraints on new supply.

Next steps

Following the revision, the mining lease is expected to undergo review by a parliamentary committee in early 2026, ahead of a possible ratification by Parliament. Approval would represent a key milestone for Atlantic Lithium, whose Ewoyaa project is designed to produce about 3.6 million tons of spodumene concentrate over a mine life of 12 years.

Ratification alone will not be sufficient to bring the project into operation. Atlantic Lithium must still secure about $185 million in financing to build the mine. The company is expected to rely in part on its U.S. partner Piedmont Lithium, which has committed since 2021 to fund a portion of the development in exchange for an equity stake in the project.

Aurel Sèdjro Houenou