NRGI Urges Economic Rigor in Ghana’s Lithium Concessions 

The Natural Resource Governance Institute (NRGI) has called on the Government of Ghana to adopt a prudent, data-driven approach before granting any fiscal concessions to Atlantic Lithium, warning that arbitrary tax reliefs could undermine the country’s economic and strategic interests in lithium extraction. 

During a media engagement, NRGI Country Manager Dennis Gyeyir emphasized the need for policy decisions grounded in rigorous feasibility studies and transparent modelling. 

“Any fiscal concessions must be supported by an economic feasibility study that shows the company will not be disadvantaged, but also that the government will not lose unnecessarily.” 

Dennis Gyeyir, NRGI Country Manager

Atlantic Lithium is reportedly seeking revisions to its 2023 fiscal terms following a significant decline in global lithium prices—from over $1,000 per tonne at the time of contract signing to around $700 per tonne today. 

While acknowledging the market volatility, NRGI cautioned against blanket reliefs. Instead, it urged the government to adopt sliding scale royalty regimes that adjust with lithium prices. This would balance investor confidence with fiscal sustainability. 

“We’ve proposed a sliding scale royalty regime that adjusts with lithium price fluctuations.

“It’s a more flexible, fairer way to manage revenue under uncertain market conditions.” 

Dennis Gyeyir, NRGI Country Manager

NRGI also recommended benchmarked pricing for exports and strengthened cost auditing mechanisms overseen by the Ghana Revenue Authority (GRA) and Minerals Commission. 

Gyeyir stressed the importance of independent state modelling to validate any claims made by the company regarding its profitability or sustainability under current prices. 

“Government must undertake its own modelling—as we do at NRGI—to verify whether the company’s demands are justified. Concessions must be justified, not assumed.” 

Dennis Gyeyir, NRGI Country Manager

He noted that while value-added tax (VAT) exemptions on critical equipment like gas plants or excavators might be warranted, broad exemptions should be avoided to safeguard domestic revenue streams. 

Refinery Require Long-Term Strategy 

Turning to the government’s interest in refining lithium domestically, Gyeyir acknowledged the importance of value addition but cautioned that such ventures are currently economically unviable. 

“We’re not saying Ghana should abandon refinery ambitions.

“But government must lay the foundations first—skills, power, water, and logistics, before pursuing such a capital-intensive venture.” 

Dennis Gyeyir, NRGI Country Manager

According to NRGI, the proposed lithium refinery would require 90,000 litres of water per day, placing additional strain on an already stretched Ghana Water Company.  

In addition, refining would need a stable, low-cost power supply, potentially linked to planned gas processing facilities. 

“We propose that government begin with a robust industrial policy that includes human capital development, infrastructure investment, and research for value addition.” 

Dennis Gyeyir, NRGI Country Manager

He also emphasized that refining should be part of a phased, policy-led industrialisation agenda, supported by incentives and anchored in a long-term vision, not rushed as a political talking point. 

Ghana’s Ewoyaa Lithium Project set to be the country’s first lithium mine, has drawn significant attention as lithium becomes central to the global energy transition.  

As demand for electric vehicle batteries and clean energy storage grows, so too does the importance of sound governance of critical minerals. 

“Lithium presents a major opportunity, but also a major responsibility.

“Let’s ensure Ghana gets a fair deal—not just for today, but for generations to come.” 

Dennis Gyeyir, NRGI Country Manager

NRGI’s intervention adds a strong voice to the ongoing debate on how Ghana can best manage its emerging green mineral wealth.  

The organization’s call for transparency, flexible royalty regimes, and long-term planning reflects broader concerns that hasty decisions today could lead to long-term losses tomorrow. 

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