Atlantic Lithium Ltd (AIM:ALL, OTCQX:ALLIF, ASX:A11) has confirmed that it is in talks with the Ghanaian government over potential fiscal concessions for its flagship Ewoyaa Lithium Project, amid a sharp decline in global lithium prices since its mining lease was granted late last year.
Responding to recent media reports, the AIM- and ASX-listed company said it is seeking terms that better reflect the current pricing environment for lithium, a key component in electric vehicle batteries and renewable energy storage.
The company is pushing for adjustments to help keep the project viable in the face of challenging market conditions.
The Ewoyaa mine, set to become Ghana’s first lithium-producing site, received its mining lease in October 2023.
Since then, however, lithium prices have cooled significantly, putting pressure on margins and altering the investment landscape for new projects.
Despite the headwinds, Atlantic Lithium said it remains committed to bringing Ewoyaa into production, continuing to work with the Ghanaian government and local communities.
It reiterated its intention to ensure the mine generates long-term economic benefits for the country, including jobs, skills training and tax revenues.
Chairman Neil Herbert said: "We are dedicated to working in a spirit of partnership with the Government of Ghana and our host communities to ensure Ewoyaa becomes a flagship project for the country and the region.
"While current lithium prices present headwinds, we believe that through collaboration and prudent fiscal measures, we can advance Ewoyaa to production and deliver lasting value for all stakeholders."