In the midst of a global energy transition aimed at reducing carbon emissions and combating climate change, the role of critical minerals such as lithium has become important.
Lithium is an important mineral for the production of batteries that power electric vehicles and store renewable energy.
News of Australia’s Atlantic Lithium’s discovery of commercial deposits of the mineral along Ghana’s coast is therefore welcoming and presents another opportunity for Ghana to further develop its extractive industry and grow its economy.
Early reports also show great prospect for CAA Mining’s lithium exploration activities adjacent Atlantic Lithium’s mine. An eventual confirmation will spell even greater news for Ghana.
But to avoid the mistakes that have riddled the country’s extractive sector – export of raw minerals, Ghana needs to aggressively pursue a lithium processing facility to add value to the raw mineral that will be extracted.
It refreshing to note that the ministry of lands and natural resources shares in the belief and is pushing for all of Ghana’s green minerals to be processed first before export.
Takoradi, one of Ghana’s port cities will be a perfect location for a processing facility that is poised to be a game changer for the nation, contributing to both sustainable energy development and economic prosperity.
Lithium, a vital component of lithium-ion batteries, plays a central role in driving the shift from fossil fuel-powered vehicles to cleaner alternatives.
As the demand for EVs and renewable energy storage soars, securing a stable supply of lithium has become a global priority. Ghana’s decision to process its own lithium domestically rather than exporting it in its raw state aligns with the broader conversation on critical minerals for the energy transition.
Establishing a lithium refinery in Takoradi could mark a turning point in the country’s economic trajectory. Not only will it create jobs and stimulate local industries, but it will also position Ghana as a key player in the global lithium supply chain.
Staying true to the goal of processing lithium domestically before export will put Ghana in the league of African countries such as Zimbabwe and Malawi who have also recognized the value of processing their local lithium resources.
Domestic processing will ensure that the country retain control over the use of its resources and can capture more value from the entire value chain.
This will have long-term economic benefits to the country.
Lavista Energy, a European giant in the industry is collaborating with CAA Mining to be an off-taker for the raw lithium to be mined when the latter commences actual mining. An earlier plan was to get the lithium exported to a plant in Europe but getting such a factory at Ghana’s Takoradi will be a better deal.
With its proximity to the Takoradi port, one of West Africa’s major deep-sea ports, the processing facility in Takoradi would have streamlined access to global markets.
Processing lithium locally reduces the carbon footprint associated with shipping raw materials overseas for refining, ultimately contributing to more sustainable supply chains.
Challenges such as the huge cost involved setting up the facility, access to technology, and skilled labor may be associated with the quest for a lithium processing plant in Ghana but these are worth challenging to realize the dream of adding value to lithium mined in Ghana.
The challenges can be addressed on various fronts including close collaboration between the government and the private sector.
Other stakeholders such as technocrats and civil society organizations must also be engaged on this subject.
Establishing a lithium processing facility in Ghana resonates powerfully within the context of the global energy transition and the broader discourse on critical minerals.
By processing its lithium domestically, Ghana not only cements its position in the evolving lithium supply chain but also reaps economic benefits, environmental gains, and the potential to become a regional leader in sustainable mineral resource management.
This article was written by Jonas Nyabor, a Ghanaian journalist and fact-checker.