Atlantic Lithium plans to list on Ghana’s stock market as it seeks local investors for its project which will supply electric vehicles made by Elon Musk’s Tesla.
The Executive Chairman Neil Herbert disclosed that the company, which trades on London’s Alternative Investment Market (AIM) and in Australia, will be obliged to list in Ghana once production at its Ewoyaa project, scheduled for the first quarter of 2025, is under way.
According to the Executive Chairman, Atlantic Lithium may accelerate the listing timetable if there is sufficient liquidity in Ghana’s stock market.
Atlantic Lithium is an Australia-based mining company that focuses on exploring and extracting lithium, a key component in the production of electric vehicle batteries. The Ewoyaa Lithium Project of Atlantic Lithium is set to become Ghana’s first lithium-producing mine. Moreover, according to the company’s latest mineral resource estimate for the project, the lithium deposit in the area grades up to 30.1 million tons at 26% lithium oxide.
Ghana to Generate Billions in Revenue
According to a report, lithium mining can also help Ghana generate approximately $4.8 billion in revenue. At a time when the Ghanaian economy has been struggling under mounting pressure from hyperinflation and debts, this development may bring some much-needed relief to the country.
Ghana is known for having significant lithium deposits and is considered an investor-friendly jurisdiction in Africa. With major automakers like Tesla investing in electric vehicle production, the demand for electric vehicle batteries will continue to grow.
Atlantic Lithium has reportedly signed a memorandum of understanding with Tesla to supply the company with lithium.
Atlantic Lithium is in discussions with the state-owned Minerals Income Investment Fund (MIIF) regarding a potential investment of up to $30 million. The soaring demand and prices of lithium, a critical component of electric vehicle batteries, have led to a surge of interest in projects throughout Africa.
Meanwhile, Tesla had previously proposed mining lithium in Nigeria, but the offer was declined by the Nigerian government, leading Tesla to now explore opportunities in Ghana.
Atlantic Lithium’s listing on Ghana’s stock market will not only enhance the company’s reputation but also improve the business environment in Ghana, leading to improved overall economic conditions. Moreover, as the company seeks local investors for its project, retail investors can benefit from potential wealth creation.
Therefore, Atlantic Lithium’s plans to list on Ghana’s stock exchange and supply Tesla with lithium are a match made in heaven. This development is set to be a blessing for Ghana, coming at a time when the economy could really use a charge.
Throughout the history of this country, Ghana is recognised for its gold and cocoa exports, and the country has in recent times aimed to expand its range of exports. Atlantic Lithium, formerly called IronRidge Resources, sees potential in extracting the battery metal as a way to achieve this goal.
Due to supply shortages and increased demand from the automotive sector, prices for the lightweight metal have skyrocketed to nearly $80,000 per tonne, representing an approximately tenfold increase since the beginning of 2021.
READ ALSO: It Was A Tough Decision To Turn To The IMF For Assistance– Nana Akufo-Addo
