Ghana’s Mineral Incomes Investment Fund (MIIF), a sovereign minerals fund mandated to maximize the value of the country’s mining dividends and royalties is poised to invest in the first lithium exploitation in the country, a release has said.

The company seeks to invest 32.9 million U.S. dollars million in the business of Atlantic Lithium, which is developing a lithium mine in Ghana, in exchange for 6.0 percent stakes in the company’s interests including the Ewoyaa lithium project.

Atlantic Lithium is a lithium-focused exploration and development company with assets in Ghana and Côte d’Ivoire, West Africa. The company is currently advancing its flagship Ewoyaa project in the Central Region of Ghana to production. Lithium is used in the production of Electric Vehicle (EV) batteries.

The release said the proposed investment by MIIF would support the development of the flagship Ewoyaa lithium project and the broader Cape Coast lithium portfolio in Ghana towards production.

The investment would entitles the state’s sovereign minerals fund to a representation each on the boards of the company’s Ghanaian subsidiaries, and participation in the near-term competitive process for Ewoyaa’s available off-take when production begins, in addition to some share rights.

The lithium mining company sees MIIF’s proposed investment as strategic and a major endorsement by an African sovereign wealth fund, spotlighting Ghana as a highly attractive mining jurisdiction and a pioneer in the decarbonisation initiatives.

“We strongly welcome MIIF’s ongoing support as a key shareholder. MIIF’s investment, at both the listed company level and via Atlantic Lithium’s Ghanaian subsidiaries, represents a huge endorsement of the company’s work to date and its belief in Atlantic Lithium to establish Ghana as a major producer of spodumene concentrate,” said Neil Herbert, Executive Chairman of Atlantic Lithium.

Herbert said MIIF’s investment would be used towards ongoing development, exploration and study expenditure across Ewoyaa and the company’s broader portfolio, and would significantly derisk the success of the project.

“We consider Ewoyaa as a project for Ghanaians. Having MIIF as a shareholder not only de-risks the project from a funding perspective but, equally importantly, further aligns the company with the best interests of its Ghanaian stakeholders, who we are proud to represent,” he stated.

The investment by MIIF in Atlantic Lithium could boost the country’s own desire to introduce EV into the transportation mix amid global energy transition efforts.

“For us at MIIF, this is the start of a partnership with Atlantic Lithium beyond Ghana. We are confident that this initial investment will enhance and accelerate Ghana’s efforts as an African critical minerals hub and to establish the country’s position in the global EV supply chain,” Edward Nana Yaw Koranteng, Chief Executive Officer of MIIF, commented.