Lithium development projects are poised to expand in Africa, with Ghana ranking 5th on the continent in terms of lithium deposits.

Fitch Solutions anticipates the commencement of production at the Ewoyaa project mine in 2025.

Over the next decade, mining companies are expected to increase exploration efforts in other regional markets such as Namibia, Mali, Ghana, and the Democratic Republic of the Congo (DRC).

“In the coming decade, we expect mining companies to broaden exploration activities in other markets in the region including Namibia, Mali, Ghana and the Democratic Republic of the Congo (DRC). However, we expect that resource nationalism, legal difficulties and political instability in the region will pose a threat to the development of new lithium projects”, the London-based firm said.

However, the London-based firm notes that challenges like resource nationalism, legal complexities, and political instability may hinder new lithium projects' development.

In June 2023, Australian firm Atlantic Lithium disclosed findings from the definitive feasibility study (DFS), projecting that the Ewoyaa site could yield 3.6 million metric tonnes (mnt) of spodumene concentrate over a 12-year mine life.

The Democratic Republic of the Congo leads Africa with abundant lithium resources, followed by Mali, Zimbabwe, and Namibia in 2nd, 3rd, and 4th positions respectively.

Lithium, a crucial raw material for transitioning to a green economy, is expected to attract foreign investment into Africa as major economies seek to secure lithium for their battery supply chains.

“We expect mining firms to broaden exploration activities to Africa in markets such as Zimbabwe, Namibia, Mali, Ghana and the Democratic Republic of the Congo (DRC). This includes all African markets with known reserves, those that are current lithium producers, such as Zimbabwe, as well as those with ongoing lithium developments”, Fitch Solutions added.