Ghana is ambitiously setting its sights on becoming a frontrunner in the electric vehicle (EV) and battery production sector, aligning with its strategic vision to spearhead e-mobility leadership in the Sub-Saharan region. This initiative is part of a broader plan to capitalize on the government’s Automobile Development Policy, designed to bolster the automobile sector’s capacity to develop EVs for both local consumption and the broader sub-Saharan African market.
In a significant move towards realizing this vision, the Minerals Income Investment Fund (MIIF) disclosed at the end of January its acquisition of a 3.06% stake, amounting to 19.25 million shares, in the London and Australian listed company, Atlantic Lithium. This $5 million investment marks a pivotal step for MIIF, as Atlantic Lithium is on the cusp of developing Ghana’s first lithium mine, the Ewoyaa Lithium Project, with operational commencement slated for early 2025. Furthermore, MIIF is poised to deepen its investment by earmarking an additional $27.9 million for a substantial stake in the Ewoyaa mine and associated assets within the Cape Coast Portfolio in Ghana, underscoring a commitment to fostering the growth of critical mineral resources within the country.
Lithium, often referred to as “white gold,” plays a crucial role in the production of batteries for EVs and cellphones, with a typical EV battery comprising significant amounts of lithium, cobalt, and manganese. This composition varies with the battery’s size, exemplified by the Tesla Model S, which contains approximately 62.6 kg of lithium. The strategic development of lithium mining and processing capabilities positions Ghana to capitalize on the burgeoning global demand for these critical minerals, essential for the transition towards e-mobility and renewable energy solutions.
MIIF CEO, Edward Nana Yaw Koranteng, underscored the fund’s long-term strategy to not only leverage the Automobile Development Policy for the advancement of the EV sector but also to establish Ghana as a pivotal hub for solar batteries, critical minerals research, and battery production for the entire sub-Saharan region. By harnessing the potential of lithium and graphite, alongside other critical minerals such as iron ore and manganese, Ghana aims to secure its position as a central battery hub, integral to the region’s e-mobility and renewable energy landscape.
The initiative is aligned with the global de-carbonization agenda, emphasizing the reduction of dependency on fossil fuels and mitigating the impacts of climate change. With the EV battery industry projected to reach a valuation of approximately $7 trillion globally and expected to quadruple over the next 25 years, Ghana’s proactive steps towards enhancing its critical mineral value chain and EV infrastructure could significantly contribute to the country’s economic development and environmental sustainability goals.
Ghana’s burgeoning EV landscape is further evidenced by the presence of six successful e-mobility companies, collectively deploying over 250 electric two-wheelers and 1,000 electric four-wheelers. Supported by national e-mobility targets, fiscal incentives, and EV policies, the government’s commitment to this transition is manifest in the 2024 Budget, which introduced several incentives aimed at expanding the EV market. With plans to install 200 EV charging stations and the implementation of conducive fiscal and industry policies, Ghana is poised for a substantial increase in EV adoption. The growing interest from EV asset financiers highlights the market’s potential, suggesting a burgeoning ecosystem supportive of e-mobility and renewable energy technologies.
This strategic orientation towards developing a robust e-mobility and battery production ecosystem not only aims to position Ghana as a leader in the region but also contributes to global efforts in combating climate change through sustainable transportation solutions. By focusing on the development and exploitation of critical minerals, Ghana is laying the groundwork for a sustainable, economically viable future that aligns with global environmental and energy transition goals, marking a significant step towards realizing its vision of becoming a central hub for e-mobility and renewable energy technologies in Sub-Saharan Africa.
Source: ESI Africa
