The Natural Resource Governance Institute (NRGI) has cautioned Ghana to approach its emerging lithium sector with strategic foresight, emphasizing the need to secure refining and value addition opportunities within its mining agreements. As global demand for lithium surges due to the clean energy transition, Ghana stands at a crossroads where it can either become just another exporter of raw materials or a key player in the battery supply chain.
As global demand for lithium intensifies, the Natural Resource Governance Institute (NRGI) has advised Ghana to strategically monitor emerging trends in lithium processing technologies in order to secure long-term value from its nascent lithium sector.
According to a recent NRGI report, innovations such as lithium phosphate—a potential alternative to conventional lithium carbonate or hydroxide—could transform global refining economics. The new product is gaining attention for its efficiency in producing LFP (lithium iron phosphate) cathode material, which is used in electric vehicle batteries. Unlike traditional processes that require manufacturers to add both iron and phosphate to lithium carbonate, lithium phosphate would require only the addition of iron, reducing production costs and complexity.
“If this new approach proves viable, countries like Ghana could become early entrants and benefit from premium pricing and investor interest,” the report noted. While Chinese firms are already piloting lithium phosphate at limited scales, commercialization remains at an early stage. A notable project in Australia, for example, has yet to reach a final investment decision.
Ghana, which holds promising spodumene reserves, is currently pursuing a cautious “mine-and-monitor” approach to lithium development. But the NRGI warns that waiting too long to enter refining could come at a cost. “The risk is that by the time Ghana is ready to pursue refining, its lithium may already be tied into long-term offtake agreements, limiting the potential to benefit from downstream value addition,” the report said.
Most of these agreements typically last around five years, giving the government a window to align future refining strategies with evolving market conditions. To stay competitive, the report urges Ghanaian authorities to maintain close oversight of Barari DV Ghana Limited—the company currently developing the Ewoyaa lithium project—and any future investors, particularly regarding their export and offtake plans.
The NRGI recommends that government and stakeholders actively engage with potential refiners and consider all possible lithium product options before committing to a refining path. “Given the shifting technological and geopolitical landscape, the economics of lithium refining could look quite different even within a few years,” it added.
With the global battery market projected to grow rapidly amid the energy transition, Ghana’s ability to adapt to market changes could define whether it captures long-term value or remains a raw material exporter.
Last Updated on April 12, 2025 by samboad
